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McDonald's prepares for layoffs while closing offices

By Elizabeth Delaney
|
April 3, 2023

McDonalds is temporarily closing its U.S. offices this week in a move to prepare itself to notify corporate employees regarding layoffs. The layoffs are part of a broader company restructuring.

The company sent an internal e-mail out to U.S. employees and some international staff last week; notifying them that they should work from home Monday through Wednesday so McDonald's could deliver decisions virtually regarding staffing changes.

'Key decisions' forthcoming regarding 'roles and staffing' cuts

Employees were also asked to cancel any in-person meetings they had scheduled at its headquarters with those from outside the organization, according to The Wall Street Journal.

“During the week of April 3, we will communicate key decisions related to roles and staffing levels across the organization,” the Chicago-based fast food burger chain said in the message viewed by WSJ.

This week is expected to be a busy personal travel week for many of its employees, which impacted the company's decision to communicate the layoffs remotely, according to the Daily Mail.

Any workers without computer access were told by McDonald's to provide their personal contact information to their manager.

“We want to ensure the comfort and confidentiality of our people during the notification period,” McDonald's said.

Unspecified number of jobs to be cut, money to be saved

The number of employees McDonalds's will lay off is not indicated at this time.

More than 150,000 people are employed by McDonald's globally in corporate roles and in the restaurants it owns. About 70 percent of the restaurants are in locations outside of the United States.

Chief Executive Chris Kempczinski said in a January interview with WSJ that his focus for the pending layoffs was to save money for McDonald's.

However, he didn't have a specific dollar amount in mind or number of jobs he planned to cut.

“Some jobs that are existing today are either going to get moved or those jobs may go away,” he said.

McDonald's to roll out growth plan 'Accelerating the Arches 2.0'

In the midst of the cuts, McDonald's also intends to open some new restaurants quickly, Kempczinski told employees in a message back in January, according to Crain's Chicago Business.

"This will help us move faster as an organization, while reducing our global costs and freeing up resources to invest in our growth," Kempczinski said in the January message.

He added that the company would also, "...look to our strategy and our values to guide how we reach those decisions and support every impacted member of the company,"

The name given to the growth plan is "Accelerating the Arches 2.0." It's designed to create new leadership roles, solve customer issues more effectively, and enhance market innovation and work efficiencies.

Kempczinski said most stores are functioning at capacity, which is why the new growth plan is being rolled out.