Kiosks for ordering food sit in the dining area of a McDonald's restaurant located inside the company's new corporate headquarters on June 4, 2018 in Chicago.

McDonald's plans to lay off workers as it streamlines management

Kiosks for ordering food sit in the dining area of a McDonald's restaurant located inside the company's new corporate headquarters on June 4, 2018 in Chicago.

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Kiosks for ordering meals sit within the eating space of a McDonald’s restaurant situated inside the corporate’s new company headquarters on June four, 2018 in Chicago.

McDonald’s is slimming down its company construction and laying off workers in an effort to cut back bills by $500 million by the top of 2019.

The Wall Street Journal reported Thursday.

“I recognize that change is difficult, and that eliminating layers within our organization means some employees will ultimately exit our system,” Kempczinski mentioned within the memo, in accordance to The Wall Street Journal.

Kempczinski didn’t elaborate on the variety of positions that will be diminished, however mentioned that the corporate would supply extra particulars throughout its city corridor assembly on June 12.

“We are always evaluating ways to better serve our customers and continue to grow our business,” Terri Hickey, a spokeswoman for McDonald’s, instructed CNBC through e-mail. “With that in mind, 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 expect to achieve by the end of 2019,” she mentioned.

The information come simply days after McDonald’s opened its new headquarters in Chicago.

Shares of the corporate had been up greater than 2 p.c on Thursday.

Read the full report from The Wall Street Journal.

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