McDonald's plans to layoff employees in April 2023, confirms CEO Chris Kempczinski

McDonald's is planning job cuts in a major reorganisation as the company is trying to refocus on its strategies to accelerate restaurant expansion, CEO Chris Kempczinski said. These layoffs are likely to take place in April 2023.

McDonald's CEO told Wall Street Journal that "some jobs that are existing today are either going to get moved or those jobs may go away”.

The company is estimated to have around 2,00,000 corporate staff and workers based on the most recent count.

According to a CNN report, Kempczinski wrote an internal memo informing the staff of the impending layoffs. The CEO also disclosed that the company would be reorganised.

“We will evaluate roles and staffing levels in parts of the organization and there will be difficult discussions and decisions ahead. Certain initiatives will be de-prioritized or stopped altogether. This will help us move faster as an organization, while reducing our global costs and freeing up resources to invest in our growth," stated the McDonald's CEO.

McDonald's layoff plans are expected to be communicated to employees by April 3, 2023. Cost-cutting has been cited as a major reason for these layoffs. According to the Wall Street Journal, the CEO expects to save money after the layoffs but "doesn't have a set dollar amount or number of jobs to cut."

However, the CEO claimed in the memo that these layoffs were necessary to "innovate faster and work more efficiently" rather than to reduce costs.

The layoff announcement by McDonald’s comes at a time when some of the largest US companies like Amazon, Salesforce and Goldman Sachs have announced massive layoffs in New Year.

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