Reorg at Ronald’s: McDonald’s looks to eliminate ‘layers’ as it plans corporate job cuts

McDonald’s continues to make corporate cuts as they look to modernize their business model.


June 8, 2018

 

As the burger chain struggles to turn around its US business, McDonald’s Corp. announced their plans for a new round of layoffs to keep shrinkin’ that corporate structure.

According to McDonald’s US prez, Chris Kempczinski, the company is restructuring offices nationwide, reducing the number of “layers” between field consultants and Chief Executive Steve Easterbrook from “8 to 6” (it’s not clear yet how many people make up each of these “layers”).

Cuttin’ the fluff off the top of the McFlurry 

Kempczinski says the changes will help the golden arches become more agile as Ronnie McDonnie modernizes its business model and cuts administrative expenses by $500m before the end of 2019.

People are eating healthier these days (or at least, less dollar menu-y), which means companies like McDonald’s are flushing (cash) faster than their customers after a Big Mac Meal.

According to McDonald’s own research, only 20% of young Americans have ever even tasted a Big Mac (which could factor into their sales falling 1.3% in Q4 last year).

McDonald’s lost 500m US orders in 5 years

Like all fast food, Mickey D’s is struggling to find ways to lure customers, and more importantly, to get them to spend money once they do (despite, $22.8B in sales last year).

One attempt at modernization are self-order kiosks, which they’re adding to 1k stores a quarter over the next 9, after learning that people spend more money with kiosks than they do giving their order to human people. 

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