McDonald's, the world's largest fast-food chain, has announced that it is closing its U.S. offices for a few days as part of a broader restructuring plan that includes layoffs. The company is
preparing to inform employees about the layoffs virtually, according to an internal email obtained by The Wall Street Journal. While the company did not specify the number of employees affected, it employs over 150,000 people globally in corporate roles and in company-owned restaurants.
The move comes as the tech sector and other industries have experienced a wave of mass layoffs due to the pandemic's economic impact. Last month, Amazon announced that it was eliminating 9,000 positions following a previous round of layoffs.
McDonald's President and CEO Chris Kempczinski warned about upcoming job cuts in a January memo and said the company would begin to communicate key decisions by April 3. Kempczinski said the company would evaluate roles and staffing levels in parts of the organization, and that there would be difficult discussions and decisions ahead.
As part of its growth strategy implemented since the beginning of the pandemic, McDonald's aims to accelerate the pace of restaurant openings and strengthen its digital, drive-thru, and delivery services. The fast-food giant reported its global sales grew about 11% in 2022, while U.S. sales increased by almost 6%.
The company has yet to comment on the report. Meanwhile, McDonald's U.S. corporate employees and some staff abroad have been advised to work from home while the company informs employees of their job status.
The COVID-19 pandemic has affected almost every industry and company around the world, with many businesses forced to adapt to a new reality of remote work, decreased consumer demand, and supply chain disruptions. As a result, many companies have been forced to restructure their operations and lay off employees to remain financially stable.
The restructuring plan is a part of the McDonald's overall strategy to recover from the pandemic and emerge stronger than ever. The company's growth plan includes increasing the number of restaurants globally and strengthening its digital and delivery services. However, this growth plan has also led to job cuts in some parts of the organization.
In conclusion, McDonald's is closing its U.S. offices for a few days as part of a broader restructuring plan that includes layoffs. The company aims to evaluate roles and staffing levels in parts of the organization as part of its growth strategy. The COVID-19 pandemic has forced many companies to restructure their operations, and McDonald's is no exception. However, the fast-food giant is determined to emerge stronger from the pandemic and continue its growth plan. Photo by Kenneth C. Zirkel, Wikimedia commons.