Business Irish

Thursday 27 July 2017

Senior staff at McDonalds Ireland cut from 40 to six people 'to reduce business costs'

Irish chief plans to step down from role

In 2015, pre-tax profits for the Irish business increased to €14m
In 2015, pre-tax profits for the Irish business increased to €14m
Louise Kelly

Louise Kelly

A number of employees in McDonalds Ireland corporate function have been cut in an attempt to reduce the cost of running the business worldwide.

Staff at the fast food industry's office in Clonskeagh, Dublin, were notified of the risk of redundancy of their roles in March of this year at a group head office meeting, according to a source close to the matter.

Through a series of redundancy consultation emails and meetings following the initial announcement, a number of employees were informed that their existing positions were "being removed from the structure".

On Friday June 9, staff received an email recognising McDonald's Ireland MD Adrian Crean's last official day in the Dublin office.

The missive, sent by McDonald's UK CEO Paul Pomroy, indicated that Mr Adrian will be stepping down from the role on July 31 after a period of 'gardening leave' and his position will not be replaced. 

The source told independent.ie that an original team in head office of around 40 - "most of whom had worked with McDonalds for 15-30 years" - has been reduced to just six people.

The senior employees were told that the changes to the Irish structure were originally put in motion in 2015 by CEO Steve Easterbrook, who had just taken over from outgoing chief Don Thompson.

"He 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.

"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."

The source told independent.ie that staff were offered alternative vacancies "in the restaurants in Ireland" or outplacements, jobs which were based in the UK.

The affected employees are understood to be bound by confidentiality agreements that they are disinclined to break "or they will not receive their redundancy pay". 

McDonald's opened its first Irish store in Grafton Street in May 1977 and currently operates in 92 stores nationwide. 

McDonald's Ireland said that they are committed to their customers, franchisees and the 5,000 people who work in the restaurants across the country.

"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.

"However, McDonald’s staff and franchisees are already aware that Adrian Crean will be stepping down as McDonald’s Restaurants of Ireland Managing Director at the end of July."

In 2015, pre-tax profits for the Irish business increased to €14m, following revenues at the business increasing by 5pc to €85m.

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