Fast-food giant McDonald's has temporarily closed all of its US offices in preparation for a round of layoffs. In an internal memo seen by The Wall Street Journal, McDonald's revealed that the
restructuring would begin during the week of April 3, with layoff messages to be delivered to employees across the country online. The memo stated that "key decisions related to roles and staffing levels across the organization" would be communicated virtually in order to allow staff to work from home due to anticipated busy travel week ahead, possibly linked to the Easter holiday. The company also canceled upcoming in-person meetings with vendors and other outside parties at headquarters.
The memo did not specify the number of employees to be laid off, but McDonald's CEO Chris Kempczinski warned in a January email that the company would experience position cuts at the corporate level. Kempczinski had stated that there would be "difficult discussions and decisions ahead."
McDonald's has around 200,000 employees around the world in corporate roles and company-owned restaurants. While 75% of its workforce is outside the US, some international corporate workers were also included in the memo. Employees who do not have access to a computer have been instructed to give their personal contact information to their managers, with the company keen to ensure their comfort and confidentiality during the notification period.
It is unclear why McDonald's has made the decision to restructure, but the pandemic has hit the fast-food industry hard, with many chains forced to shut their doors temporarily, whilst others have adapted their business models. The company has also faced criticism in recent years over pay and working conditions, with employees demanding a $15 minimum wage and union representation.
The decision to lay off employees is not unique to McDonald's, with many companies having to make difficult decisions in the wake of the pandemic. As businesses adapt to changing consumer behavior and economic uncertainty, layoffs are an unfortunate consequence for some. However, companies can help to ease the burden by providing support to their employees, such as retraining programs, job search assistance, and severance packages.
In conclusion, McDonald's decision to temporarily shut down its US offices as it prepares for layoffs is a reflection of the economic uncertainty and changing consumer behavior caused by the pandemic. While the decision is undoubtedly difficult for affected employees, it is important for companies to adapt to the current environment and make the necessary changes to ensure their long-term survival. McDonald's and other companies can help to ease the burden on their employees by providing support, such as retraining programs and job search assistance. Photo by Foto: M.F. Naaldenberg, Wikimedia commons.