McDonald’s is feeling the sting of Chipotle, Shake Shack, and Five Guys Burgers And Fries. The company’s old burger and fries practices feel stale and customers are looking for healthier, tastier alternatives. The company’s same-store sales are slipping and that means less corporate dollars.
Because of the company’s troubles McDonald’s was forced to downsize 135 corporate employees at its U.S. headquarters in July and 90 corporate employees who were posted overseas.
The company is restructuring in order to act like a more nimble organization in the age of fast casual dining.
McDonald’s Chief Executive Steve Easterbrook in May announced plans to cut $300 million in costs by the end of 2017. The corporate reset is meant to simplify and streamline operations to make the company more nimble in a market that is witnessing unprecedented competition growth.
“We do not take decisions that impact jobs lightly, but we committed in May to implement meaningful changes to reset our business, remove layers and find cost efficiencies, and we are acting with a sense of urgency on that commitment,” McDonald’s spokeswoman Heidi Barker Sa Shekhem said in a statement.
It is not known at this time if more layoffs are on the way but more sales slumping could definitely lead to more job cuts at the corporate level.