NEW YORK (AP) – A report said McDonald’s has closed its United States (US) offices for a few days as the company prepares to inform employees about layoffs.
The Wall Street Journal cited an internal e-mail from the Chicago-based fast-food giant saying US corporate staff and some employees overseas should work from home while the company notifies people of their job status.
McDonald’s did not immediately reply to e-mailed requests for comment. The report said McDonald’s would inform its employees this week about staffing decisions that are part of a wide restructuring of the company announced earlier.
Though the US labour market remains strong, layoffs have been mounting, mainly in the technology sector, where many companies over-hired after a pandemic boom. IBM, Microsoft, Amazon, Salesforce, Facebook parent Meta, Twitter and DoorDash have all announced layoffs in recent months.
Policymakers at the Federal Reserve have forecast the unemployment rate may rise to 4.6 per cent by the end of this year, a sizable increase historically associated with recessions.
McDonald’s has more than 150,000 employees in corporate roles. About 70 per cent of those employees are based outside the US.
The company reported its global sales rose nearly 11 per cent in 2022, while sales in the US climbed almost six per cent. Total restaurant margins rose five per cent. In its latest annual report, it cited difficulties in adequately staffing some of its outlets.
In January, McDonald’s said its ‘Accelerating the Arches’ programme would focus on “deliveries, Drive Thru, digital and development”.
“We’re performing at a high level, but we can do even better,” CEO Chris Kempczinski said in a January 6 letter to employees. He said the company was divided into silos and that the approach was “outdated and self-limiting”.
As the company reshapes its strategy, he said, “we will evaluate roles and staffing levels in parts of the organisation and there will be difficult discussions and decisions ahead.”
