Redundancies announced by McDonalds Ireland as restructuring begins

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  • A number of senior employees in the McDonalds Ireland corporate function have been made redundant as plans have been set in motion to reduce the cost of running the business worldwide.

    Staff based out of McDonalds’ central office in Clonskeagh, Dublin, were notified of the risk of redundancy in March of this year following a meeting of head office personnel. A number of employees were notified by email that their existing positions were to be “removed from the structure”, as the fast food giant moved forward with its plans to scale back head office operations in Ireland, with a greater management focus to be placed in the UK.

    Adrian Crean, McDonalds managing director in the Republic of Ireland is touted to leave his position this month, with no planned replacement. An email circulated on the 9th June by UK CEO Paul Pomroy informed staff than Crean would be vacating the role following a period of “gardening leave”.

    Senior employees in McDonalds Ireland were informed that these changes were initially put in motion in 2015 by Steve Easterbrook, who had just succeeded Don Thompson as chief executive of the corporation. The email claimed that Easterbrook "identified a plan to achieve returns [to ensure continued investor support]...and alongside it a reduction in the cost of running the McDonald's global business". The email continued, forewarning staff of impending redundancy: “a large part of these running costs is made up of salary costs...this means that we are identifying a number of roles will be at risk of redundancy."

    It is believed that McDonalds Ireland’s head office team will be cut from 40 to just 6 people. Affected staff have reportedly been offered alternative positions in McDonalds restaurants across Ireland, or in outplacement jobs in the UK. The employees are understood to be bound by a confidentiality agreement that they are disinclined to break, "or they will not receive their redundancy pay".

    Operating in 92 stores nationwide, McDonalds have insisted on their commitment to their customers, franchisees and 5,000 employees across the island. "For over a decade, the Irish business has been part of the UK and Ireland business unit and we have recently made some operational changes to reflect that structure," said a spokesperson. "In a planned restructuring, operations at the Dublin office are being scaled back. We are currently in a consultation process with our employees and are not able to give specific details while the new corporate structure is being finalised”.

    A spokeswoman for McDonald's in Northern Ireland said: "We can confirm that we are undertaking a process of restructuring in the Republic of Ireland. Our Northern Ireland operation is not affected directly”.

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