McDonald’s closes US offices in anticipation of corporate job cuts.
McDonald’s is temporarily closing its US offices this week in advance of an expected announcement about corporate job cuts.
The Wall Street Journal, which broke the news first, reported that McDonald’s had told US and some international employees to work from home so that job decisions could be made virtually.
The burger chain has declined to comment on the number of affected posts.
The layoffs are part of a larger company restructuring announced in January.
McDonald’s CEO Chris Kempczinski stated at the time that the company was being harmed by a “outdated and self-limiting” structure.
According to the Wall Street Journal, the company sent a message saying, “During the week of April 3, we will communicate key decisions related to roles and staffing levels across the organization.”
According to the paper, McDonald’s has also asked employees to cancel all in-person meetings at its headquarters.
McDonald’s raises the prices of five menu items.
McDonald’s warned employees in a January memo that “difficult discussions and decisions” were ahead, and that corporate staffing levels would be reviewed by April.
According to the memo, the proposals would help the company “move faster as an organization, while reducing our global costs and freeing up resources to invest in our growth.”
McDonald’s employs approximately 200,000 people in corporate and owned restaurants, with 75% of them located outside of the United States.
The Chicago-based company has a global presence in over 160 countries.
According to the company’s January report, sales at McDonald’s increased by 10.9% last year, with US sales increasing by 5.9%.
However, the company stated that the strength of the dollar has harmed its overseas profits.