McDonald’s is closing up to 100 restaurants and reducing its workforce as it faces increasing competition from online burger chains.
The US chain will cut its global workforce to just 1,500 from more than 4,000.
In the UK, it will reduce its workforce to around 300 from 1,600.
McDonald’s said on Thursday that it would cut 1,400 jobs and slash its workforce by 1,000 by the end of the year.
McDonalds plans to open its first new UK restaurant in 2021.
“This is not a decision that will impact the restaurant business, but rather one that will focus on the long-term success of McDonald’s UK,” McDonald’s chief executive Andy Wong said.
“We have had a great success here and have worked closely with our partners to deliver a strong return on investment for our shareholders.”
In the US, McDonald’s reported a net loss of $50 billion in the third quarter, up from $48 billion a year earlier.
It will now spend the money on acquisitions and other measures, including reducing its US workforce to 1,100 from 1.2 million.
“McDonald’s has been in a very challenging market for years now, but the continued growth of the online business and strong US dollar has helped our margins and profitability,” McDonalds chairman and CEO Jim Easterbrook said in a statement.
“Our strategy to grow and improve our businesses has been the foundation of our strong business performance for the past four years.”
McDonald’s US revenue fell by 2 per cent to $1.17 trillion in the three months to June, but its profits rose by 9 per cent year on year to $2.17 billion.
The restaurant chain is also investing $1 billion in its first UK restaurant, Bailey Seafood.
Bailey has been opening in Coventry and Manchester since the beginning of this year, and plans to expand to a further 30 stores by 2021.
The company said it had invested more than $1bn in the UK and is now one of the biggest restaurant chains in the world, with a total of about 1,300 restaurants.
McDonald was one of three fast-food chains to report a profit in the fourth quarter.
The other three are Burger King and KFC.