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First Published on Tuesday, November 18, 2008

Yum Brands Cuts Jobs and Sells Company Ops to Franchisees

Yum Brands Inc. said it plans to cut "several hundred" jobs and sell company-owned KFC and Pizza Hut restaurants to franchisees as a first steps in its restructuring of its U.S. business, according to a Reuter’s report.

The company currently owns and operates 20 percent of Pizza Hut and KFC units, which it plans to reduce to 10 percent by selling outlets to franchisees. The Louisville, Ky. –based company, however, plans to retain 20 percent ownership of its Taco Bell restaurants, according to the report.

As part of the restructure, the company plans to shift approximately 200 positions from Yum Brands to the company’s brand divisions, spokesman Jonathan Blum told Reuters. Furthermore, several hundred other jobs will be eliminated across the group.

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