The Chicago-based burger chain said in an internal email that U.S. corporate employees and some staff abroad should work from home while the company notifies people of their job status virtually, The Wall Street Journal reported Sunday.
The report said McDonald’s will notify employees of staffing decisions this week. The company didn’t specify how many workers will be laid off, The Wall Street Journal said.
McDonald’s employs more than 150,000 people globally in corporate roles and in company-owned restaurants, with more than 70% of employees located outside the U.S., according to a securities filing.
McDonald’s declined to comment on the report on Monday.
Why are companies doing layoffs?
McDonald’s joins a growing number of companies that have announced layoffs in recent months.
The tech sector has experienced a wave of mass layoffs since last year after a pandemic-hiring boom. Now, layoffs have swept other industries including retail and media. Amazon last month announced it was eliminating 9,000 positions, following a previous round of mass layoffs.
In a January memo, McDonald’s President and CEO Chris Kempczinski warned about upcoming job cuts and said the company would begin to communicate key decisions by April 3.
“We will evaluate roles and staffing levels in parts of the organization and there will be difficult discussions and decisions ahead,” Kempczinski said. “We will look to our strategy and our values to guide how we reach those decisions and support every impacted member of the company.”
As part of McDonald’s growth strategy, implemented since the beginning of the pandemic, the company aims to accelerate the pace of restaurant openings, as well as strengthen its digital, drive thru and delivery services.
The fast-food giant reported its global sales grew about 11% in 2022, while U.S. sales increased by almost 6%.