(COLUMBUS) — Wendy’s Company confirmed on Friday the company announced layoffs earlier this week.
A spokesperson for the company declined on Friday to disclose the number of employees that will be affected.
“On Monday, we announced a restructuring of our Restaurant Technology, Enterprise Technology and Information Security organizations and an expanded partnership with a global technology consultant, which are intended to create a best-in-class technology organization that sets the Wendy’s system up for success in the next 50 years,” said Heidi Schauer, a spokeswoman for Wendy’s.
On Dec. 5, the Board of Directors of The Wendy’s Company approved a plan to realign and reinvest resources in its Information Technology organization to strengthen its ability to accelerate growth, according to a filing Wendy’s made with the SEC.
The company will be partnering with a third-party global IT consultant on this new structure to leverage their global capabilities, which the Company believes will enable a more seamless integration between its digital and corporate IT assets, according to the SEC filing.
The company expects that the realignment plan will reduce certain employee compensation and other related costs that the Company intends to reinvest back into IT to drive additional capabilities and capacity across all of its technology platforms. The Company expects the majority of the impact of the realignment plan to occur at its Restaurant Support Center in Dublin, Ohio, according to the filing.
Wendy’s expects to incur total costs of approximately $13 to $15 million related to the realignment plan, including approximately $8 to $9 million of severance and related employee costs and approximately $5 to $6 million of third-party and other costs.
Wendy’s expects that substantially all of the total costs of the realignment plan will consist of cash expenditures, which are expected to begin in the fourth quarter of 2019 and continue through 2020 and into 2021, with approximately $12 million of the total cash expenditures occurring in 2020, according to the SEC filing.