McDonald’s temporarily shuts US offices ahead of layoffs – report

theguardian.com:

A report says McDonald’s has closed its US offices for a few days as the company prepares to inform employees about layoffs.

The Wall Street Journal cited an internal email from the fast-food giant – which is headquartered in Chicago – saying that US corporate staff and some employees overseas should work from home while the company notifies people of their job status.

McDonald’s did not immediately reply to emailed requests for comment. The report, published on Sunday, said McDonald’s would inform its employees this week about staffing decisions that are part of a wide restructuring of the company announced earlier.

Though the US labor market remains strong, layoffs have been mounting, mainly in the technology sector, where many companies over-hired after a pandemic boom. IBM, Microsoft, Amazon, Salesforce, Facebook parent Meta, Twitter and DoorDash have all announced layoffs in recent months.

Policymakers at the US Federal Reserve have forecast the unemployment rate may rise to 4.6% by the end of this year, a sizable increase historically associated with recessions.

McDonald’s has more than 150,000 employees in corporate roles. About 70% of those employees are based outside the United States.

The company reported its global sales rose nearly 11% in 2022 while sales in the US climbed almost 6%. Total restaurant margins rose 5%. In its latest annual report, it cited difficulties in adequately staffing some of its outlets.

McDonald’s in January said its “Accelerating the Arches” program would focus on “deliveries, Drive Thru, digital and development”.

“We’re performing at a high level, but we can do even better,” the chief executive officer, Chris Kempczinski, said in a 6 January letter to employees. He said the company was