LOUISVILLE, Ky. (AP) - Fast-food company Yum Brands Inc. said Wednesday it will eliminate several hundred jobs and shift up to a couple hundred more as part of a restructuring of its sluggish U.S. business.
The restructuring is part of Yum's strategy to sell more company-owned stores to franchisees, spokesman Jonathan Blum said. The operator of KFC, Taco Bell and Pizza Hut said last month its third-quarter U.S. operating profit fell 16 percent, due to surging commodity prices and lagging KFC sales.
"We believe this will enable us to operate more effectively and improve our cost structure," Blum said in detailing the cutbacks in a phone interview.
The moves won't affect Yum's high-growth international operations, led by its robust China division. Strong overseas sales have more than offset sluggish U.S. results.
Blum said that several hundred jobs will be eliminated at Yum's Louisville operations as well as at Taco Bell's headquarters in Irvine, Calif., at Pizza Hut's headquarters in Dallas and in field operations nationwide. An unspecified number of cuts will be achieved by not filling open positions, he said.
Also, up to a couple hundred more positions will be shifted from Yum's corporate headquarters in Louisville to the company's brands, Blum said.
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