McDonald’s, one of the world’s largest fast-food chains, has announced a company-wide restructuring this week that has resulted in hundreds of job cuts and reductions in compensation packages for some employees.
The restructuring has impacted staff members in the United States and abroad, including those working at McDonald’s Chicago headquarters and in its field offices, across various departments, including marketing and operations.
The restructuring process has been unfolding in several stages throughout the week, with some employees being informed about layoffs on Monday, as reported by The Wall Street Journal. Additionally, McDonald’s temporarily closed its US offices and started informing some corporate employees about the layoffs.
While the company has offered some employees the chance to remain with the company, the compensation packages have been reduced, including changes to titles and benefits such as bonuses and equity grants.
This restructuring comes as the fast-food chain faces ongoing challenges due to the COVID-19 pandemic and increased competition in the market.
This move by McDonald’s indicates a shift in the company’s approach towards cost-cutting measures and efficiency improvement in response to current market conditions. The company has previously focused on expansion and growth strategies, but the current restructuring suggests a change in approach.
Furthermore, the restructuring process may have an impact on employee morale and organizational culture, particularly among those who have been affected by job cuts and reductions in compensation.
It remains to be seen how the restructuring will ultimately impact the performance and position of McDonald’s in the fast-food industry, but it highlights the ongoing challenges that companies face in adapting to changing market conditions.
McDonald’s Implements Cost-Cutting Measures
An internal email sent on Thursday revealed that as part of the recent restructuring at McDonald’s, nearly 10 employees across different departments in the United States were promoted or given different roles.
However, this move comes at a time when several US companies are laying off their employees, particularly those in white-collar positions, due to concerns about a potential recession.
To optimize their resources, McDonald’s announced the closure of their field offices, which they considered underutilized, in the coming months, and instead adopt a national structure that will oversee its 10 field offices. The fast-food chain’s president, Joe Erlinger, emphasized that while the McDonald’s brand is in a strong position, their business has become more complex over the years.
McDonald’s instructed its U.S. and some international employees to work from home. Senior employees who had worked for the company for decades, as well as those who held positions for just a few years, were among those who were laid off.
Consulting firm McKinsey & Co. advised McDonald’s on its restructuring effort. McDonald’s has undergone several rounds of layoffs in recent years as part of a plan to be “more dynamic, nimble, and competitive.”