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McDonald's Temporarily Closes U.S. Corporate Offices in Preparation for Layoffs

The company has not said how many corporate employees will be terminated as part of its restructuring plan

McDonald's Temporarily Closes U.S. Corporate Offices in Preparation for Layoffs

Fast-food giant McDonald’s notified employees in its American corporate office to work from home for the week pending upcoming layoffs.

“During the week of April 3, we will communicate key decisions related to roles and staffing levels across the organization,” McDonald’s said in a message to employees, according to The Wall Street Journal.

The burger chain has not publicly said how many of its 150,000 corporate employees will be cut or which office may be closed. Employees that are terminated will be notified remotely to ensure “comfort and confidentiality,” according to a message McDonald’s sent to employees, per WSJ. Any employees who will not have access to a computer during the week have been asked to provide their personal contact information to their managers.

Approximately 70% of McDonald’s corporate employees work outside the United States. McDonald’s employs over 2 million people in total. The chain has more than 38,000 restaurants in over 100 countries.

“The burger chain's layoffs form part of a larger restructuring at the company, whose executives have expressed caution about the company's spending despite its growing profits in recent quarters,” reports CBS News. “McDonald's reported fourth-quarter net income of $1.9 billion in 2022, up from $1.64 billion during the quarter a year prior, while its same-store sales rose 10.3% during the same period.”

The Chicago-based chain’s restructuring plan – titled “Accelerating the Arches 2.0” – aims to add an additional 1,900 locations in 2023, per The Washington Post. The plan includes a focus on M-C-D, an acronym for maximizing marketing, committing to the core and doubling down on the four Ds – delivery, digital, drive-thru and development.

“Culturally relevant campaigns are driving growth and elevating the entire brand,” the company said in January while touting the success of its Famous Orders campaign. “We will continue to lean into that strategy and scale platforms across markets to find new ways to tap into the zeitgeist and have fun with our customers.”

McDonald’s told investors in January that it expects chicken to “continue to be a growth driver” and that the company will “improve on its burgers and other classic items” such as Big Macs, McNuggets and fries.

The impending layoffs have been expected as part of McDonald’s intention to end or de-prioritize some of its endeavors, per Nation’s Restaurant News

“This will help us move faster as an organization, while reducing our global costs and freeing up resources to invest in our growth,” Chris Kempczinski, the chain’s chief executive officer, wrote in January. “As part of this work, we will evaluate roles and staffing levels in parts of the organization and there will be difficult discussions and decisions ahead. We will look to our strategy and our values to guide how we reach those decisions and support every impacted member of the company.”

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