McDonald’s focuses financial firepower on restaurant innovation

Mcdonald's exterior

McDonald’s has signalled that it will trim headcount at its US headquarters as part of a drive to focus more of its financial firepower on investments such as digital and new restaurant platforms.

The group has indicted that it will redirect around $100m (£67m) into what is being branded a long-term restructuring effort.

The news comes in the wake of a disappointing fourth quarter at its 30,000 outlets worldwide in what has been the burger giant’s worst fiscal year in at least a decade.

Although resources are being redirected to business growth priorities, positions are being created in the process of this initiative.

McDonald’s recently engaged a new marketing campaign, overhauled executive staff, and is working on eliminating some menu items and adding a customisation platform called “Create Your Taste.”

A statement issued by the company states: “McDonald’s is moving with a sense of urgency to improve our financial performance by taking actions based on the long-term.”

“This includes a diligent review of our corporate home office and McDonald’s USA structures and resources in order to redirect nearly $100 million in savings toward business priorities, such as digital and new restaurant platforms that will support our key growth drivers.”

The cuts were unveiled in an Illinois layoff notice report published December 31. The notice states that layoffs will be effective February 16.

Reporter: Michael O’Shea

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