McDonald's

McDonald's Lays Off Employees as Part of $100 Million Cost-Cutting Effort

2 min read

McDonald's is sticking to its New Year's resolution to cut back in 2015.

The burger chain is laying off 63 people at its company headquarters in Oak Brook, Ill., following a long sales slump that has left McDonald's scrambling for solutions. One fix: redirecting nearly $100 million through cost-cutting efforts.

"McDonald's is moving with a sense of urgency to improve our financial performance by taking actions based on the long term," a company spokesperson said in a statement. "This includes a diligent review of our corporate home office and McDonald's USA's 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."

Related: McDonald's Hopes New Ads Will Have Customers Feeling the Love

The digital and new restaurant platforms presumably include the "Create Your Taste" platform, which is expanding from a limited test and rolling out to 2,000 McDonald's locations in 2015. The customized burger and chicken sandwich platform allows customers to order customizable, high-quality (and more expensive) burgers and sandwiches using digital kiosks -- a fast-casual touch for the fast-food giant.

Other changes at McDonald's include cutting eight items from the menu and simplifying ingredients. Hopefully, these cost-cutting and quality-enhancing efforts will help McDonald's turn around its dismal sales in 2015. As of the chain's last monthly earning report in November, McDonald's had not experienced any growth in U.S. sales in more than a year. 

Related: McDonald's Is Testing a New Healthy, High-Quality Food Concept – Just Not in the U.S.

More from Entrepreneur

Grow Your Business at Entrepreneur LIVE! Join us on Nov. 16 in Brooklyn, NY, to learn from legends like Danica Patrick and Maria Sharapova, pitch our editors, meet with investors, and potentially walk away with funding!
Register here

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.