McDonald’s announces layoffs, cuts pay and benefits for others

McDonald’s has recently announced a company-wide restructuring, which involves the laying off of hundreds of corporate office employees, a reduction in pay and benefits for some, and the closure of various field offices.

Internal emails that were obtained by the Wall Street Journal revealed that Joe Erlinger, president of McDonald’s USA, wrote in an email that the McDonald’s Brand is in the best position it has been in years, but the business is becoming increasingly complex.

A number of executives who had been at the company for many years were let go, including Tim Andersen who had spent 42 years with the brand.

Another executive, who held a director position at McDonald’s, even wrote a poem to mark the end of his more than two decades with the company.

To ensure privacy and respect for those affected, McDonald’s closed its offices and required all staff to work from home.

Sources say that more employees will be entering new roles and being promoted rather than laid off. Global McDonald’s employs a total of over 150,000 people, out of which 70% are based outside of the United States, not including the more than 2 million workers employed in franchised McDonald’s restaurants around the world.

Despite the restructuring, McDonald’s reported net income of $1.9 billion in the fourth quarter of last year, an increase from the previous year.