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McDonald’s Plans to Eliminate a Number of Corporate Jobs as Part of Reorganization Plan

McDonald’s Corp. intends to go through with a series of corporate layoffs within its U.S. operation as part of a reorganization plan aimed at “eliminating layers,” the company stated in a memo on Wednesday.

In an email sent to all U.S. employees, suppliers and franchisees that was reviewed by The Wall Street Journal, McDonald’s announced that it would be restructuring regional offices and reducing the number of “layers” between field consultants and Chief Executive Steve Easterbrook from eight to six.

“I recognize that change is difficult, and that eliminating layers within our organization means some employees will ultimately exit our system,” McDonald’s USA President Chris Kempczinski said in the memo, according to the Journal.

The company did not immediately make clear how many jobs are at risk of being affected by the reorganization.

The Journal also reported that McDonald’s has already made an undisclosed number of corporate job cuts, and the most recent layoffs are part of a strategy to reduce administrative expenses by $500 million before the end of 2019.

Amid news of the layoffs, McDonald’s stock climbed around 2% on Thursday morning.