In an unprecedented move, McDonald’s Corporation closed corporate offices both regional and corporate in the U. S. and internationally from Monday through Wednesday, April 3rd to April 5th. The pause was designed to allow management to communicate retention and separation decisions to all employees.
McDonald’s has progressively reduced employment in company owned stores and support installations from 235,000 worldwide in 2017 to 205,000 in 2019, and down to 150,000 at present. Seventy percent of McDonald’s employees are employed outside the U. S.
The move to reduce the workforce is prompted by the need to reduce overhead costs. CEO, Chris Kempczinski, intends to introduce a leaner structure with fewer silos in an attempt to expedite innovation and progress.
The initiative by McDonald’s follows layoffs in high tech companies, including Apple, Amazon and others that recognize the need to reduce headcount to maintain profitability and is a preemptive action preceding a predicted mild recession.