McDonald’s is closing its U.S. offices for a few days this week, a report said Sunday, as the company prepares to inform employees about layoffs.
The Wall Street Journal cited an internal email from the Chicago-based fast-food giant saying U.S. corporate staff and some employees overseas should work from home from Monday through Wednesday, while the company notifies people of their job status.
It is unclear how many employees will be laid off.
McDonald’s did not immediately reply to emailed requests for comment. The report said McDonald’s would inform its employees this week about staffing decisions that are part of a wide restructuring of the company announced earlier.
"During the week of April 3, we will communicate key decisions related to roles and staffing levels across the organization," the company said in the message viewed by the Journal.
McDonald's also asked employees to cancel all in-person meetings with vendors and other outside parties at its headquarters, the report added.
The fast-food giant was expected to begin announcing key decisions by Monday.
Though the U.S. 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 U.S. Federal Reserve (Fed) 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 over 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 U.S. climbed almost 6%. Total restaurant margins rose 5%. In its latest annual report, it cited difficulties in adequately staffing some of its outlets.
In January, McDonald's 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," CEO Chris Kempczinski said in a Jan. 6 letter to employees. He said the company was divided into silos, and the approach was "outdated and self-limiting."
As the company reshapes its strategy, he said, "we will evaluate roles and staffing levels in parts of the organization and there will be difficult discussions and decisions ahead."
