By Michael E. CohenThe National Association of Manufacturers (NAM) today reported that McDonald’s Corporation (NYSE: MCD) plans to slash 1,200 jobs, including more than 700 in its US manufacturing and distribution business.
The company has been in the news for its decision to close more than 5,000 restaurants in the US this year and for its failure to find a buyer for its struggling burger business.CEO Michael Duke has been under fire for his management style, which critics say has led to the company’s demise.
But Duke told reporters in a conference call today that the company is in “good shape” despite the job cuts.
The NAM also today said that McDonalds’ stock will drop about 10% this year, compared with its 52-week average.
That would mark its lowest weekly decline since March 2013.
In addition to the job reductions, McDonalds also is cutting spending.
It is reducing its operating expenses by about $500 million, or 2% of its total operating expenses, and is cutting back on marketing, advertising and other costs.
McDonalds announced this week that it is ending the company-owned burger chain’s “Big Mac” and “Burger King” franchises in a deal that was announced in September.