Chicago-based McDonald's Corp. MCD has triggered a sweeping restructuring plan that affects hundreds of employees worldwide, with some facing layoffs and others seeing cuts to their compensation packages.
The shake-up, which includes job cuts and changes across various departments and locations, is part of the dollar menu giant's ongoing efforts to streamline operations and reduce costs.
The restructuring process included employees being offered the opportunity to stay with the company, but with reductions in their total comp packages, including changes to titles and benefits like bonuses and equity grants, the Wall Street Journal reported Friday.
Read also: Google Goes Beyond Layoffs To Rein In Costs: Less 'Free Lunch,' Fewer Fitness Classes And More
McDonald’s process also includes promotions for other employees across its operations, finance and marketing departments.
The company announced plans to close its field offices in the coming months, citing underutilization and the need for a more streamlined national structure. In an internal email seen by the Journal, Joe Erlinger, president of McDonald's USA, acknowledged the growing complexity of the business while emphasizing the brand's strong position.
The layoffs affected a diverse range of employees, not limited to just newcomers. The Journal reported a tenured 20-year director at the fast-food chain was laid off alongside those who had been there for just a few years.
Consulting firm McKinsey & Co. reportedly advised McDonald's on its restructuring plan, and it's not the first time the fast-food chain has undertaken such efforts. In 2018, the company announced a plan to reduce administrative expenses by $500 million.
The company also acknowledged the need to break down silos and consolidate efforts on various projects to increase efficiency and innovation.
MCD Price Action: Shares of McDonald’s ended Thursday’s trading session at $282.89, according to data from Benzinga Pro. The stock is up 7% year-to-date.
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