McDonald’s is shedding a whole lot of employees in its corporate offices, cutting pay and advantages for others, and shutting field offices as a part of a companywide restructuring, in accordance with a report.
In line with internal emails obtained by the Wall Street Journal, the Chicago-based fast food giant informed restaurant owners that it will shutter field offices in the approaching months.
McDonald’s will consolidate its operations into one national structure that will oversee all of its 10 field offices, in accordance with the Journal.
“While the McDonald’s Brand is within the strongest position it has been in years, we also recognize that our business has grown increasingly complex in recent times,” Joe Erlinger, president of McDonald’s USA, said in the e-mail obtained by the Journal.
Several of those that were laid off were executives who spent many years with the corporate.
Tim Andersen, who served as vp of operations and development, posted a note on his LinkedIn account on Thursday that read: “I used to be informed last week I used to be starting my planned retirement 3 years early during a big reorganization at McDonald’s.”
“Although I all the time wanted the choice to depart to be mine, I’m so happy with the 42 years I spent with the Brand and much more so the incredible people and teams I started working with in so many alternative locations and positions,” Andersen wrote.
One other executive who held a director position at McDonald’s wrote a poem on LinkedIn to mark the tip of his 20-plus-year tenure at the corporate.
Several of those laid off include executives who’ve been with the corporate for many years.AFP via Getty Images
“This will not be goodbye – But a ‘so long’ note – I’m cheering for you,” the poem read.
Earlier this week, McDonald’s said it will close its offices and instructed staffers to do business from home, where they’d be notified of changes as a part of the restructuring.
The move was done “out of respect,” and to “provide dignity, confidentiality, and luxury to our colleagues,” a source who was not authorized to talk to the media told Reuters.
“It was that people can be called right into a conference room with the windows papered over after which must walk back to their desk to gather their personal belongings and leave with their head down,” the source said.
McDonald’s could have more employees going into latest roles this week or receiving promotions than being laid off, the source added.
The layoffs were announced despite strong earnings within the fourth quarter of last yr.Getty Images
The chain known for its Golden Arches has greater than 150,000 employees globally, with about 70% based outside america, including in company-owned restaurants.
The layoffs don’t include the greater than 2 million staff in franchised McDonald’s restaurants all over the world.
McDonald’s restructuring comes despite the proven fact that its most up-to-date earnings report beat analyst estimates.
Within the fourth quarter of last yr, McDonald’s reported net income of $1.9 billion, or $2.59 per share, which is up from $1.64 billion, or $2.18 per share, yr over yr.
