McDonald's, the popular fast food chain, has temporarily closed all its offices in the United States as they prepare to deliver layoff messages online to an unknown number of employees across the country. The move comes as part of a restructuring plan aimed at helping the company grow.
Starting Monday, layoffs will begin after employees were told to work from home so that they can receive their notices virtually. The decision for remote working is due to an anticipated busy travel week ahead, potentially connected to Easter holidays.
The Chicago-based burger restaurant operates 40,000 restaurants in over 160 countries with a total of two million staff in its franchised outlets. Despite low customers turning to the chain for cheap and fast food during Covid-19 pandemic restrictions resulting in sustained profits, CEO Chris Kempczinski warns that the company had become unfocused.
"The reality is our business model and our cost structure have remained fairly constant over time," Kempczinski said on a call with analysts last month. "And while we've made progress in recent years reversing some negative trends, I know we can do better."
This statement was followed by his announcement that job cuts would begin in April as part of his strategy for growth by refocusing priorities and simplifying operations.
Although it remains unclear how many jobs are going to be lost or which parts of McDonald's business will be affected most by these cuts since this information has not been released yet publically. It is clear that McDonald’s hopes these changes would help streamline operations and boost profitability moving forward amidst growing competition from other fast-food chains such as Burger King and Wendy’s who continue to expand rapidly even during difficult times like Covid-19 pandemic restrictions.
In conclusion, this restructuring plan may cause anxiety among employees waiting for their virtual layoff messages but it remains necessary for companies such as McDonald's looking towards long-term growth goals despite short-term costs.