According to a report from the Wall Street Journal, McDonald’s Corporation will be temporarily closing its offices in the United States this week in preparation for informing corporate workers about layoffs that would be implemented by the fast food giant as part of a larger company restructuring.
According to the source, McDonald’s instructed its employees in the United States and part of its overseas workforce in an email sent last week that they should work from home on Monday, Tuesday, and Wednesday in order for the company to be able to make staffing choices electronically.
According to a communication from the corporation that was obtained by The Wall Street Journal, it was said that “During the week of April 3, we will communicate key decisions related to roles and staffing levels across the organization.”
Throughout the company’s reorganization, the burger giant did not make public the number of people that it intends to let go as part of the process.
Employees were given a heads-up in January by CEO Chris Kempczinski that “tough talks and choices” will soon be made.
The information was disclosed by Kempczinski in a message that was sent to employees all over the world to announce the company’s updated business strategy, which is called Accelerating the Arches 2.0. This strategy calls for the company to reorganize its workforce and consider eliminating some positions in order to become more cost-effective, innovative, and efficient.
According to a letter written by the company’s chief executive officer, “[W]e will evaluate roles and staffing levels in parts of the organization and there will be difficult discussions and decisions ahead.” The CEO also mentioned that the organization has plans to inform workers who will be affected by the changes by April 3 of their status.
In January, Kempczinski gave an interview to the Wall Street Journal in which he stated that “Some jobs that are existing today are either going to get moved or those jobs may go away.”
He disclosed to the news organization that he does not now have a predetermined monetary amount that he intends to save or a specific figure indicating the number of employees that may be eliminated.
As a part of its updated plans, McDonald’s will also quicken the pace at which it opens new restaurants. The fast food giant also stated that it may test additional new concepts aimed at improving the convenience of its customers, such as the Order Ahead Lane that is available at a recently opened location in Forth Worth, Texas.
On Thursday, March 30, McDonald’s stock reached a new all-time high before the market closed.
The fast food chain’s closing price of $277.79 on Thursday was due, in part, to analyst upgrades of profits per share during the previous three months, from $10.49 to $10.58 in 2023, and from $11.44 to $11.70 in 2024, according to financial columnist and Seeking Alpha contributor David Zanoni.
According to the fast food chain’s most recent annual report, there were more than 13,000 outlets in the United States and slightly over 40,000 restaurants worldwide as of the end of 2021. the most recent annual report of the fast food business, as of the end of 2021, it operated just over 40,000 restaurants throughout the world, including more than 13,000 outlets in the United States.
