McDonald’s Closes US Offices for Layoff Announcements and Restructuring Plan
Fast-food giant McDonald’s has closed its offices across the US for three days in order to inform corporate employees about layoffs as part of a broader restructuring plan. The company has already cut hundreds of jobs in various departments at both its Chicago headquarters and its field offices, and pay and benefits have also been reduced.[0] Some employees have been allowed to remain on the payroll in exchange for reduced compensation.[0] McDonald’s is planning to close its 10 nationwide field offices in favour of a more centralised corporate structure. The closures are part of a drive to streamline operations and reduce costs in response to the increasing complexity of McDonald’s business.
This is not the first time McDonald’s has cut jobs.[1] In 2018, it cut management-level workers in order to be “more dynamic, nimble and competitive”. The latest job cuts are part of a wider trend of downsizing among corporations. Tech giants such as Amazon, Meta, Salesforce, Microsoft and Google have all cut jobs recently, but layoffs have also been announced by companies outside tech, including J.Crew, 3M, Dow and Disney.
Despite the layoffs, McDonald’s remains in a strong position. Last year, the company’s global sales rose by almost 11%, with nearly 6% of that in the US.[2] Even though McDonald's increased their menu prices to combat inflation last year, their customers didn't seem to mind, since foot traffic rose by 5% in 2022.[2]
McDonald’s has field offices in Atlanta, Dallas, Chicago, Denver, Nashville, Stamford, Conn.[3]Long Beach, California.[4]Bethesda, Maryland.[4]Its website states that it has locations in Columbus, Ohio and Walnut Creek, California.[4] In addition to the layoffs, the company is also restructuring its leadership team, with Michael Gonda becoming chief impact officer for North America, and Sandy Rodriguez taking over as global chief communications officer. The position of McDonald's national field president has been assigned to Myra Doria.[5]
The job cuts have been expected since January, when CEO Chris Kempczinski warned employees that layoffs were possible.[5] Kempczinski has suggested that the company’s menu could be simplified as part of the restructuring process.[6] A farewell poem from one of the employees laid off in the restructuring read: “This is not good-bye – But a ‘see you later’ note – I’m cheering for you.[7]
0. “McDonald's Employees Hit With Massive Round of Layoffs in Company Restructuring” The Daily Beast, 8 Apr. 2023, https://www.thedailybeast.com/mcdonalds-employees-hit-with-massive-round-of-layoffs-in-company-restructuring
1. “McDonald’s is closing its corporate offices and preparing for layoffs” The Washington Post, 3 Apr. 2023, https://www.washingtonpost.com/business/2023/04/03/mcdonalds-closes-offices-before-layoffs
2. “McDonald's layoffs are not related to rising minimum wages” NPR, 5 Apr. 2023, https://www.npr.org/2023/04/05/1168116140/mcdonalds-corporate-layoffs-hundreds
3. “McDonald's is closing its field offices in the U.S. as it moves to a national model” Restaurant Business Online, 6 Apr. 2023, https://www.restaurantbusinessonline.com/financing/mcdonalds-closing-its-field-offices-us-it-moves-national-model
4. “McDonald's to close field office facilities” Crain's Chicago Business, 6 Apr. 2023, https://www.chicagobusiness.com/restaurants/mcdonalds-close-field-office-facilities
5. “McDonald's reportedly laying off hundreds as it closes field offices” Business Insider, 7 Apr. 2023, https://www.businessinsider.com/mcdonalds-closing-field-offices-laying-off-hundreds-employees-2023-4
6. “As McDonald's warns chicken sandwiches face the chop… is YOUR favourite item under threat?” Daily Mail, 4 Apr. 2023, https://www.dailymail.co.uk/news/article-11936859/As-McDonalds-warns-chicken-sandwiches-face-chop-favourite-item-threat.html
7. “McDonalds lays off HUNDREDS of workers and closes offices in major restructuring” The Mirror, 7 Apr. 2023, https://www.mirror.co.uk/news/us-news/breaking-mcdonalds-lays-hundreds-workers-29657962
