McDonald's Cuts Pay Packages, To Follow Others In Mass Lay Off Trend: Report

McDonald Corp. is undergoing a company-wide restructuring this week that may result in layoffs and for some employees salary reduction.

The corporate restructuring has been developing in several stages this week and McDonald's has temporarily closed its US offices and began telling certain corporate staff about layoffs on Monday.

Source : Getty

After Accenture, Amazon, Nordstrom, and Indeed announced mass layoffs last month, yet another US firm is reportedly in the midst of company-wide restructuring. McDonald Corp is undergoing a company-wide restructuring this week that may result in layoffs and for some employees salary reduction.

According to The Wall Street Journal, McDonald Corp.’s restructuring could result in hundreds of layoffs in the US and abroad. The WSJ's report cited people familiar with the matter saying that employees at McDonald's corporate headquarters in Chicago and in its field offices, and across departments like marketing and operations, have all been impacted by job losses and changes. 

The report says that the corporate restructuring has been developing in several stages this week. McDonald's has temporarily closed its US offices and has begun telling certain corporate staff about layoffs on Monday.

The news agency Reuters on April 3 reported that the number of corporate employees the company was planning to lay off this week will tally in the "hundreds."

The fast-food chain has offered some employees a chance to remain at the company with reductions in their compensation packages, including changes to titles and benefits such as bonuses and equity grants, the report said.

The company has over 150,000 employees in its corporate, branches, and company-owned and-operated restaurants, earlier this year.  It had announced plans to abandon or "de-prioritize" various initiatives while also saying it was assessing corporate workforce numbers.

Big Layoffs This Year

Microsoft-owned open-source developer platform GitHub has sacked its entire engineering team in India, according to a report by TechCrunch. The report cited a person familiar with the matter saying that over 100 workers have been affected. It says the company informed the employees about the job cut.

IT services firm Accenture said it would lay off about 2.5 per cent of its workforce, or 19,000 employees, becoming the latest major company to announce job cuts. Accenture announced the layoffs to streamline operations and transform corporate functions to reduce costs.

Facebook parent Meta in March announced that it would cut another 10,000 jobs, just four months after it let go 11,000 employees. The layoff was confirmed by Facebook founder and CEO Mark Zuckerberg in a post.

As per Tech Crunch, 121,205 tech jobs have been lost in the first three months of 2023. February saw 36,491 employees laid off, while January recorded 84,714 employees being downsized.

The job portal Indeed has reduced its staff by around 15 per cent. The Company CEO Chris Hyams in a blog post said the cuts, which were made with great care, would come from ‘nearly every team, function, level, and region’ at Indeed and Indeed Flex. 

Hundreds of workers at five US Walmart facilities that fulfil e-commerce orders are being asked to find jobs within 90 days at other company locations.