McDonald’s may be planning to outsource jobs to India as part of a $500 million cost reduction plan it announced back in November, according to a report from the New York Post
Led by CEO Steve Easterbrook, the company has already reduced a number of jobs, including the termination of a regional office in Columbus, Ohio.
In early May, McDonald’s said that it would eliminate a number of roles starting in July. That would be in addition to the more than 400 employees it laid off last year, the Post reported.
“As part of our announced efforts to deliver $500 million in savings by the end of 2017, we are restructuring many aspects of our business, including an accounting function,” Terri Hickey, a McDonald’s spokeswoman, told CNBC. However, she declined to provide specific details of the cost-savings actions.
The company has seen two consecutive quarters of growth due, in part, to the success of all-day breakfast and combo meal promotions. However, consumer interest has waned.
“The bundled meals aren’t so new anymore, and McDonald’s All Day Breakfast is about six months old now,” Mark Kalinowski, a Nomura analyst, told the Post in early June.
On Thursday, he lowered second-quarter estimates for McDonald’s sales and second- and third-quarter estimates for profits.