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McDonald's temporarily shuts US offices, prepares layoff notices

M

Mikey Radio

McDonald's temporarily shuts US offices, prepares layoff notices, Wall Street Journal reports​

www.reuters.com

McDonald's temporarily shuts US offices, prepares layoff notices, Wall Street Journal reports

Burger chain McDonald's Corp is temporarily closing its U.S. offices this week as it prepares to inform corporate employees about its layoffs as part of a broader company restructuring, the Wall Street Journal reported on Sunday.
www.reuters.com www.reuters.com
In an internal email last week to U.S. employees and some international staff, McDonald's asked them to work from home from Monday through Wednesday so it can deliver staffing decisions virtually, the report said. It is unclear how many employees will be laid off.
"During the week of April 3, we will communicate key decisions related to roles and staffing levels across the organization," the Chicago-based 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.
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Are we sure this isn't an April Fool's joke? Or did Elon Musk buy McDonalds while we slept? Seems like a bizzare way to go about a RIF.
 
PTBoardOp94 said:
Are we sure this isn't an April Fool's joke? Or did Elon Musk buy McDonalds while we slept? Seems like a bizzare way to go about a RIF.
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It does seem a bit odd, but this was posted by Reuters which is one of the most reliable and typically unbiased news organizations, and it was posted on the evening of 4/2, so no April Fool's.

Here's a similar article from the Associated Press:
apnews.com

WSJ: McDonald's to close offices briefly ahead of layoffs

A report says McDonald's has closed its U.S. offices for a few days as the company prepares to inform corporate employees about layoffs. The Wall Street Journal cited an internal email from the Chicago-based fast-food giant saying U.S. staff and some corporate employees overseas should work from...
apnews.com apnews.com
 
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PTBoardOp94 said:
Are we sure this isn't an April Fool's joke? Or did Elon Musk buy McDonalds while we slept? Seems like a bizzare way to go about a RIF.
Click to expand...

It's becoming more common. Ensure everyone is at home and deliver the layoff notices via Zoom. No risk of unpleasant in-office outbursts by those who get the bad news, and (arguably) you save the employee being walked out of the building by security like an intruder.
 
michael hagerty said:
It's becoming more common. Ensure everyone is at home and deliver the layoff notices via Zoom. No risk of unpleasant in-office outbursts by those who get the bad news, and (arguably) you save the employee being walked out of the building by security like an intruder.
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The self-serve kiosks were a pretty clear indicator this 'right-sizing' move was in their future.
And, depending on their position, these are potentially minimum wage employees. If RIF's are being planned at 'company stores' there's no need to put local management through unnecessary risk or problems because some upset burger flipper loses their sh*t.
 
Kelly A said:
The self-serve kiosks were a pretty clear indicator this 'right-sizing' move was in their future.
And, depending on their position, these are potentially minimum wage employees. If RIF's are being planned at 'company stores' there's no need to put local management through unnecessary risk or problems because some upset burger flipper loses their sh*t.
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Not sure that's how this reads, Kelly.

They're closing their corporate offices, not their restaurant (term used loosely) locations.

This appears to be a layoff of corporate employees, not workforce employed by local franchisees.
 
michael hagerty said:
Not sure that's how this reads, Kelly.

They're closing their corporate offices, not their restaurant (term used loosely) locations.

This appears to be a layoff of corporate employees, not workforce employed by local franchisees.
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I read it as more open-ended than that. Sure corporate folks will be affected, but like other companies recently, I expect there will be an overall-percentage amount that each department will need to contribute. Most other larger companies seem to be leaning into 8-10% for starters.
 
Kelly A said:
I read it as more open-ended than that. Sure corporate folks will be affected, but like other companies recently, I expect there will be an overall-percentage amount that each department will need to contribute. Most other larger companies seem to be leaning into 8-10% for starters.
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I missed the "company stores" reference when I replied. Five percent of McDonalds locations are owned by corporate. Still, this looks like it's geared more toward a management haircut than "burger flippers".

I don't doubt that there'll be some cuts there, but I'd also be surprised if they shut those 675-ish stores all at once to do it.
 
I can’t imagine there will be any layoff at the store level unless they lay off retail managers. The retail store staff can’t not physically come into the office for a few days. And there is so much turnover and these days retail openings are not always easy to fill, so if retail staff is being reduced because of self service kiosks, those reductions have probably already happened via attrition
 
CTListener said:
Just two days ago, at the Harpoon Brewery brewpub in Windsor, VT, and many more times and in many more places before that. So long as I don't think about what's in it or how it was made, I'm fine with the McRib. But then, isn't that the case with any meat product?
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My elitism is showing. About the only McDonald's product I'm happy to eat is an Egg McMuffin. And maybe their fries. Okay, the hash browns are pretty good too.

I just have a tendency to resist when fast food tries to reach beyond. It's like in the 80s when Jack in the Box went on a big marketing campaign for its croissant breakfasts. Yeah, when I want a croissant, Le Box is exactly what I have in mind.
 
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yeah, this is weird to see a big company and one of the biggest names in Fast Food shut down their offices temporary to start handing out layoffs. but i think McDonalds may be looking at the upcoming recession as it seems every company as of late is in "Survival mode" as layoffs are common during economic downturn periods and sadly is recession is either coming soon or has already begun. and as for shutting down offices, after all the recent mass shootings in our country, maybe McDonalds don't want their corporate headquarters to become the site of the next mass shooting with a high death toll.
 
Will_H_69_9 said:
as for shutting down offices, after all the recent mass shootings in our country, maybe McDonalds don't want their corporate headquarters to become the site of the next mass shooting with a high death toll.
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First, God forbid.

Second, the mass shootings involving dismissed employees rarely, if ever, happen on the day of the dismissal.
 
michael hagerty said:
First, God forbid.

Second, the mass shootings involving dismissed employees rarely, if ever, happen on the day of the dismissal.
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I can't find an analysis of workplace shootings, but it seems that as many are disgruntled current employees as former employees or people who feel a particular business did them some kind of harm or wrong.

And the highly personal ones seem to involve handguns, not semi-automatic weapons, rifles, etc. But that may vary depending on the licensing and purchasing regulations in each jurisdiction.
 
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