McDonald's unveils new business plan and warns of layoffs

The Chicago-based company is looking to open new restaurants around the world.

McDonald's is working on a modernization and expansion process which aims to open new restaurants around the world. However, the new plan would overshadow other previous initiatives, which ultimately could result in staff cuts.

Chris Kempczinski, the company's CEO and person in charge of announcing the new strategy, warned that it may "reduce the priority" of other internal projects. The details of the plan were not disclosed, as so far, the company has only communicated certain details internally.

However, the Executive Management let it be known that the decision could lead to layoffs in several areas. In fact, Kempczinski immediately followed by saying that they will help all employees affected by the cuts.

"We will draw on our strategy and values to guide how we will make these decisions and support all affected members of the company," Kempczinski said, according to a letter accessed by Reuters.

Good indicators

The Chicago-based company more than met the business targets it had set for itself at the beginning of 2022. Worldwide sales even grew by 9.5% in the third quarter of the year, despite higher menu prices due to nationwide inflation.

The number of new stores McDonald's will build under the new plan, as well as the number of workers who will be affected, will not be known until early April.