McDonald’s Corp.’s Japan business forecast wider losses this year, announcing store closures and job cuts after sales suffered from food scandals.
The fast-food chain plans to close 131 stores this year, a cost of 4 billion yen, and to refurbish 2,000 others over the next few years, it said. About 100 jobs would be lost and the company’s president, Sarah Casanova, pledged to take a 20 percent pay cut for the next six months with other directors getting salary cuts of as much as 15 percent.
The company has faced difficulties after customers complained of finding foreign objects in its food, including a human tooth, prompting the company to announce preventive measures including store cleanings and inspections. Labor disputes at U.S. ports also forced it to ration french fries.