Why is McDonald’s closing offices in US?


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CEO Chris Kempczinski had announced in January that the company would be cutting jobs as part of a broader corporate restructuring. Now McDonald’s has closed its offices from this Monday till Wednesday and communicated to the employees that they’ll be notified virtually if they’re affected by the cuts.

McDonald’s reorganization will include deprioritizing and halting certain initiatives, Kempczinski said back in January. At the time, McDonald’s said the layoffs weren’t a cost-cutting measure, but instead meant to help the company innovate faster and work more efficiently.

McDonald’s said it was closing its US. offices for those three days for employees’ comfort and privacy, as well as for timing since it’s a busy travel week ahead of Easter. McDonald’s sales have held up even as retailers have reported a plunge in spending. The company told investors in January that some lower-income consumers were ordering fewer items per visit but customers generally continued to spend at its restaurants. 

McDonald’s has conducted several rounds of layoffs in recent years. In 2018, McDonald’s said that the company was cutting its management to be “more dynamic, nimble and competitive.” McDonald’s employs more than 150,000 people in its corporate offices and company-owned restaurants. Roughly 45,000 of those workers are based in the US.

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