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26/03/03 . n/a . Reuters . USA
McDonald's to Cut Jobs, Delay Renovation
NEW YORK (Reuters) - McDonald's Corp. (NYSE:MCD - news) will soon cut several hundred administrative jobs and is delaying plans to renovate old restaurants, the Chicago Tribune reported on Wednesday, citing company insiders.
The company, the world's largest fast-food chain in terms of sales, has been struggling to overcome a year of declining sales and a "burger war" with competitors that has cut into revenue.
McDonald's reported its first quarterly loss in January.
The company plans to delay a $300 million renovation plan to save cash, the newspaper said. The report said the program had received lukewarm responses from franchisees.
"We strongly caution anyone from jumping to conclusions based on rumors and speculation," McDonald's spokesman Bill Whitman said. "Absolutely no decisions have been made."
He added that McDonald's is continuing to move forward with its focus on renovating restaurants.
One company executive told the Tribune that McDonald's will likely cut real estate executives and other corporate positions in order to save money.
A franchisee consultant, Dick Adams, told the Tribune that the cuts may occur in regional offices. McDonald's headquarters are in Oak Brook, Illinois.
McDonald's Chief Executive Jim Cantalupo is expected to provide details on his plans for reviving the company when he speaks to analysts next month.