McDonald’s US turnaround Plan may include Layoffs

Mcdonald’s Corporation (NYSE: MCD), one of the biggest fast-food chains in the world, is modernizing its locations by installing ordering kiosks, adding curbside pick-up and improving drive-thru experiences. However, with these improvements, Mcdonald’s is said to be preparing to lay off employees as it is trying to increase profitability. These improvements help the fast-food chain run things smoother and quicker, which can sometimes be avoided through employee-to-customer interactions.  According to Wall Street Journal, the company’s president sent out an email to employees, suppliers and franchisees, stating the restructuring process means some employees will eventually be laid off. To respond to this shocking news, Terri Hickey, a Mcdonald’s spokesperson stated “We are putting into place a new U.S field structure that will better support our franchisees and will ensure McDonald’s continues on a path to being more dynamic, nimble and competitive. These planned actions are consistent with our previously announced $500 million G&A targeted savings, which we expected to achieve by the end of 2019”

            McDonald has been working to tackle these challenges in its U.S. business operations that it has been struggling with throughout recent years. It has introduced a number of new offers and remodeled franchise locations to offset declining profitability. After other fast-food chains introduced new breakfast deals, the number of U.S. store visits declined by 5%. However, sales rose by about 3% at U.S. locations, after offering new premium items and increasing prices. But, growth in other markets still outpaced its domestic sales. Shares of McDonald’s rose during the trading sessions, going up by about 4.6%.

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