McDonald’s (NYSE: MCD) is closing its US headquarters and instructing US and some international employees to work remotely between Monday and Wednesday as the fast food corporation prepares for layoffs.
According to the report by The Wall Street Journal, McDonald’s advised employees to postpone all meetings with suppliers and other events scheduled at the company’s headquarters.
“During the week of April 3, we will communicate key decisions related to roles and staffing levels across the organization,” it quoted the letter sent by the company’s leadership to its employees last week.
McDonald’s is halting employees from entering the office in order to give staffing notices remotely, citing an increased possibility of travel during the week of April 3.
“We want to ensure the comfort and confidentiality of our people during the notification period,” the letter added.
McDonald’s said in January that it would reduce corporate worker numbers by April 3 in order to save money.
“Some jobs that are existing today are either going to get moved or those jobs may go away,” McDonald’s CEO Chris Kempczinski said in an interview at the time.
The fast food corporation has over 150,000 corporate employees, with 70% of those positions headquartered outside of the United States.
In a regulatory filing, Kempczinski is said to have received more than $10.8 million in compensation in 2020, despite the company missing performance targets.
As CNBC reported, after the restaurant business was pounded by the coronavirus outbreak in April 2020, the fast-food giant announced that its leaders would undergo wage cutbacks. Kempczinski’s base compensation was cut in half, but was reinstated in October 2020 after the company’s revenues improved.
McDonald’s is one of numerous firms looking to cut jobs in the face of high inflation and a sluggish economy. In two layoff announcements this year, Amazon stated it will lay off a total of 27,000 people, largely corporate staff. Disney CEO Bob Iger revealed last week that the entertainment firm would cut 7,000 jobs by the summer, including the closure of the corporation’s metaverse department.
When the company announced earnings in January, it stated that expenses were rising due to inflationary pressures. Yet, higher prices have aided McDonald’s. In January, the company said that visits to its locations climbed as inflation drove customers to lower-cost options rather than more expensive restaurants.
In the most recent quarter, McDonald’s recorded $1.9 billion in net income, a 16% increase year on year.
McDonald’s last traded at $280.72 on the NYSE, currently trading at an all-time high.
Information for this briefing was found via Fortune, CNBC, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
