When Wendy’s makes fast food, fast food country gets angry
Wendy’s fast-food empire has become fast food’s latest target, as the fast-casual chain said Tuesday that it would cut more than half of its U.S. workforce.
The company said it would lay off 1,000 employees, or about 1.2 percent of its total workforce.
Wendy’s had a net loss of $1.6 billion last year, according to a filing with the Securities and Exchange Commission.
Wendy, whose stores in Memphis, Tennessee, and Dallas, Texas, are home to the country’s second-largest Wendy’s, said it planned to cut back on labor costs in an effort to cut costs while meeting regulatory requirements.
The fast- food giant also said it will stop paying its employees more than $15 an hour, a move that would reduce the cost of some employees’ paychecks to around $7 an hour.
Wendy has said it plans to pay some employees $15 or less per hour.
The move was announced after the Federal Reserve Board said it had given the company until Nov. 14 to reduce its labor costs to $15.
The board’s decision came after Wendy’s filed a lawsuit in October alleging that fast food workers were being paid too little for work that is done on the fast food chain’s dime.
The company has denied the allegations.
Wendi’s announced its plans to cut 5 percent of employees in Memphis and 5 percent in Dallas by 2019, according the company’s filing with regulators.
Wendy said it has laid off about 1,700 workers in the Memphis area and 3,300 in Dallas.
The Memphis and Dallas stores have about 1 million employees each.