Fast-food giant McDonald's has announced it is laying off hundreds of workers and closing a number of offices in a major restructuring, it is reported today.
The huge structural changes are ongoing with the US offices being temporarily closed and employees being informed they were being laid off on Monday.
Reports emerged last week CEO, Chris Kempczinski, was looking to lay off thousands of corporate staff, and hinted the restructuring could see menus simplified.
It was claimed that the company asked employees to work from home Monday to Wednesday as it delivers staffing decisions virtually.
“We want to ensure the comfort and confidentiality of our people during the notification period,” the company said in an email, reported by the Wall Street Journal, and ordered those without access to a computer to give their personal contact information to their manager.
During the week, McDonald's corporation planned to communicate key decisions related to roles and staffing levels across the organisation including lay offs.
The restructuring included role changes or promotions for some employees, according to an internal company email sent on Thursday, reports the Wall Street Journal.
The changes come as a potential recession looms forcing many companies to consider restructuring.
The tech sector was the first to see major layoffs but this spread to other companies.
McDonald’s told store owners and operators in the Thursday email it would close its field offices, saying that they are underutilised.
The current system will be replaced by a single national structure overseeing its ten field offices.
Joe Erlinger, president of McDonald’s USA division, wrote: “While the McDonald’s Brand is in the strongest position it has been in years, we also recognize that our business has grown increasingly complex in recent years."
McDonald's restructuring is likely to affect the restaurants' menu, Mr Kempczinski also noted in the email.
The corporation's CEO said: "We had across the globe 70 different, distinct versions of what a crispy chicken sandwich would look like. I don't need 70 different permutations of a chicken sandwich."
In January, McDonald's had announced plans to make "difficult" decisions about changes to its corporate staffing levels by April as part of a broader strategic plan for the burger chain.
McDonald's has more than 150,000 employees in corporate roles, with about 70% of those employees based outside the United States. It is feared the firm will slash many of these staff.
The company reported its global sales rose nearly 11% in 2022, while sales in the US climbed almost 6%. Total restaurant margins rose 5%.
Among those laid off were senior employees who had worked for the firm for decades. Some emailed their colleagues saying their goodbyes.
A farewell poem from one of the employees finished: “This is not good-bye – But a ‘see you later’ note – I’m cheering for you."
