McDonald's Corp., the world's largest fast-food chain, announced an organizational restructuring this week that included layoffs, reshuffled employees, and closures of certain offices.
The Wall Street Journal
The report provides a detailed analysis of the key corporate changes.
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McDonald's told US and international employees to work from home during the first half of the working week, so that it could make staffing decisions remotely.
The restructuring is affecting the entire company, resulting in layoffs for hundreds and compensation package reductions for some employees, according to WSJ, citing sources familiar with this matter.
The company offered some employees the chance to remain with them, but they would have to accept a reduction in their compensation package. This included changes to titles and benefits.
A memo sent to employees on Thursday revealed that the restructuring of the company took place in waves. In the memo, it was stated that there had been changes in positions and promotions of other employees. This included ten corporate officers who worked across finance, marketing, and operations.
The company announced that it would close its field offices in the summer. It cited underutilization as well as a need for an efficient national structure. Joe Erlinger expressed his concerns in an internal email that the complex structure of McDonald's USA needed to be simplified.
Erlinger wrote in an email that "While McDonald's Brand has reached its strongest position in many years, our business has become increasingly complex over the past few years."
McKinsey and Co. has advised McDonald's in its restructuring efforts. It's not the first time that the fast-food giant has made such an effort. In 2018, the company was able streamline its operations and save $500 million on administrative costs.
McDonald's has approximately 150,000 employees in its corporate offices, other offices, and restaurants owned and operated by the company. It announced months ago that staffing levels were to be adjusted.
These job cuts are part a broader restructuring, as many companies in other industries cut headcounts to prepare for a possible recession.
McDonald's has already revealed that customers with lower incomes are ordering fewer products.
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