Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

McDonald's is laying off hundreds of corporate employees and letting some stay with lower benefits, reports say

McDonald's is laying off hundreds of corporate employees and letting some stay with lower benefits, reports say

McDonald's will cut "less than 1,000" jobs, Restaurant Business reports. The fast-food giant's CEO has said cutbacks "will help us move faster."
McDonald's reportedly is laying off hundreds of employees – and offering some the option to stay on with lower compensation – as it closes field offices nationwide. The changes come three months after the fast-food chain warned that a restructuring was imminent.

The company is letting go of "less than 1,000" employees, Restaurant Business reported on Thursday. The exact number of positions affected by the layoffs wasn't clear. Prior to the reduction, McDonald's had about 150,000 employees across its corporate teams and company-owned restaurants.

Some employees were told that they could continue working at McDonald's if they accepted reductions in bonuses and equity grants, the Wall Street Journal reported on Friday.

The layoffs affected both decades-long employees as well as recent hires, the Journal reported. Some laid-off employees broke the news on LinkedIn, with one composing a haiku.

"These decisions weren't easy to make, but I am confident this is the right path forward to improve how we solve problems for our customers and people," McDonald's US president, Joe Erlinger, said in a message to restaurant operators seen by Insider.

McDonald's is also shuttering 10 field offices, according to Erlinger's note. It says the restaurant chain has field offices in cities such as Dallas, Nashville, and Long Beach, California. The employees who previously reported to those offices will work remotely permanently.

Field officers spend much of their time traveling and visiting McDonald's restaurants, and office attendance has taken an additional hit over the last few years due to the pandemic, Restaurant Business reported.

The 10 field divisions will remain, though McDonald's is combining them under a single structure for the whole US. Previously, the chain divided its field offices between one zone for the East and one for the West, according to Erlinger's note.

The reorganizing is also bringing some promotions with it. Michael Gonda will become McDonald's chief impact officer for North America after working as global chief communications officer. That role will be filled by Sandy Rodriguez, currently vice president of U.S. communications, according to Erlinger's note. Myra Doria will be McDonald's national field president.

A McDonald's spokesperson declined to comment on the reorganization.

McDonald's employees have been expecting job cuts since January. Back then, CEO Chris Kempczinski told employees that layoffs were possible in April. The cuts "will help us move faster as an organization, while reducing our global costs and freeing up resources to invest in our growth," Kempczinski said in a memo to employees.

The restaurant chain is "in the strongest position it has been in years," Erlinger wrote in his memo this week. But McDonald's corporate structure "has grown increasingly complex in recent years," he added.

"As we learned during the pandemic, there is great value in leaning into simple solutions, like returning to our core menu, to better leverage our scale and make it easier to work together across all three legs of the stool," Erlinger wrote.

The reductions are part of McDonald's "Accelerating the Organization" and "Accelerating the Arches" growth strategy. The chain told employees last week to work from home between April 3-5 and cancel meetings at its headquarters in Chicago as it conducted the layoffs, according to a memo seen by Insider.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
UK Drought Cuts Harvests and Raises Food-Security Fears
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Senate Scrutinises AI-Driven Personalised Pricing
Spain Seeks Mainland Transfers for 1,100 Children Stranded in Ceuta
Spain and Morocco Trade Blame After 72,000 Migrants Enter Ceuta
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
Record-Low Danube Forces Nuclear Cuts and Emergency Power Curbs
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
×