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New York CNN —McDonald’s is spending $100 million on marketing and to help franchises most heavily affected by a recent E. coli outbreak that has sickened more than 100 people and damaged sales. In a memo sent to employees and obtained by CNN, McDonald’s is spending $35 million on marketing, which includes a value deal focused on its chicken nuggets, plus $65 million directed toward franchisees that have lost business in states where the outbreak happened. Visits and sales took a nosedive in October after the Centers for Disease Control and Prevention and the Food and Drug Administration said that fresh slivered onions served on the Quarter Pounders were the likely source of an E. coli outbreak. More than 100 people got sick across 14 states and several lawsuits have been filed against the chain. McDonald’s has said recent tests showed no E. coli in its food, and in the memo noted its Quarter Pounder burgers topped with slivered onions are now back on menus nationwide.
Persons: New York CNN —, McDonald’s, , Michael Gonda, Tariq Hassan, Chris Kempczinski Organizations: New, New York CNN, CNN, Centers for Disease Control, Food and Drug Administration Locations: New York, North America
A Quarter Pounder with cheese, fries and a drink arranged at a McDonald's restaurant in El Sobrante, California, on Oct. 23, 2024. In the wake of last month's E. coli outbreak tied to McDonald's slivered onions, the fast food giant said it will invest over $100 million to boost restaurant sales and speed up the recovery at impacted franchisees. Of that total, $65 million will be invested into supporting owners who have lost business, targeting those in the hardest-hit states. Approximately $35 million will be invested traffic-driving programs, including marketing efforts, according to a memo to owners and employees viewed by CNBC. McDonald's will also be driving "local recovery plans for highly impacted markets" with more details to come in the weeks ahead, the memo said.
Persons: McDonald's, Michael Gonda, Tariq Hassan, Ian Borden Organizations: CNBC, Street Journal, Bloomberg, for Disease Control, CDC, and Drug Administration Locations: El Sobrante , California
McDonald's employees have expected job cuts since January, Insider reported. The company is letting go of "less than 1,000" employees, Restaurant Business reported on Thursday. McDonald's is also shuttering 10 field offices, according to Erlinger's note. It says the restaurant chain has field offices in cities such as Dallas, Nashville, and Long Beach, California. The restaurant chain is "in the strongest position it has been in years," Erlinger wrote in his memo this week.
McDonald's is laying off hundreds of corporate staff, Restaurant Business reported Thursday. The company is letting go of "less than 1,000" employees, Restaurant Business reported on Thursday. McDonald's is also shuttering 10 field offices, according to Restaurant Business. It says the restaurant chain has field offices in cities such as Dallas, Nashville, and Long Beach, California. Myra Doria will be McDonald's national field president, according to the report.
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