McDonald’s Shuts Offices Ahead of Major Layoffs | What This Means for the Future

McDonald’s has closed all its offices in the USA for some days. The company is going to tell their employees if they lost their job or not. A letter from McDonald’s said that workers in the US and other countries should work from home while being told about jobs status.

McDonald’s didn’t respond right away to our questions over email. This week, McDonald’s will tell their workers about the changes they’re making as part of a big restructure that was announced some time ago.

Recently, lots of companies in the tech industry have announced layoffs. These include big names like IBM, Microsoft, Amazon, Salesforce, Facebook parent Meta, Twitter and DoorDash. Because of this, the Federal Reserve believes that unemployment will go up in the U.S. by the end of this year to 4.6%, which is higher than usually happens when an economy slows down.

McDonald’s has a lot of employees working for them, with over 150,000 of them in corporate roles. Most of these people are based outside the United States and make up around 70% of the total work force. The company said that during 2022 their global sales went up by 11%, while those in the US increased by 6%. They also looked at the profits made from all the restaurants and found out it had risen by 5%. At their annual report meeting, McDonalds mentioned how hard it was to keep their outlets fully staffed.

At the start of this year, McDonald’s announced its ‘Accelerating the Arches’ project. This program focused on making delivery orders quicker, improving Drive Thru lines and developing better digital services.

The CEO, Chris Kempczinski said that in a letter to all employees that even though they were doing well, there was still a lot of room for improvement. He also mentioned that McDonald’s was too divided into different sectors and this way of operating was becoming outdated.

The company is changing what it does and this will mean some people won’t keep their jobs. Talking about it will be hard but tough decisions have to be made.