McDonald's plans US job cuts to save $668m

Employees at the new McDonald's headquarters in Chicago, Illinois, on Monday. The company did not specify the number of jobs that will be cut when it announced its plans as part of a restructuring to boost its US business.
Employees at the new McDonald's headquarters in Chicago, Illinois, on Monday. The company did not specify the number of jobs that will be cut when it announced its plans as part of a restructuring to boost its US business.PHOTO: BLOOMBERG

NEW YORK • Fast-food giant McDonald's said on Thursday it plans to cut an unspecified number of jobs as part of a restructuring to save US$500 million (S$668 million) and boost its US business.

McDonald's USA President Chris Kempczinski announced the job cuts in a message to employees. A company spokesman said the move was part of a previously announced plan to cut US$500 million in spending by next year.

"We are always evaluating ways to better serve our customers and continue to grow our business," said spokesman Terri Hickey. "With that in mind, we are putting into place a new US field structure that will better support our franchisees and will ensure McDonald's continues on a path to being more dynamic, nimble and competitive."

The fast-food giant plans to streamline the management structure, and the specifics will be outlined at a June 12 town hall meeting, The Wall Street Journal reported.

Shares of McDonald's jumped 3.8 per cent to US$168.52 in afternoon trading.

Chief executive Steve Easterbrook has been credited with boosting McDonald's performance after being tapped to lead the company in 2015.

However, its US efforts have lagged behind that of its international division in key respects. In the first quarter, for example, comparable sales in the US business grew by 2.9 per cent, well below the company-wide increase of 5.5 per cent.

AGENCE FRANCE-PRESSE

A version of this article appeared in the print edition of The Straits Times on June 09, 2018, with the headline 'McDonald's plans US job cuts to save $668m'. Print Edition | Subscribe