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McDonald’s cuts 63 jobs at headquarters

McDonald’s cuts 63 jobs at headquarters

Layoffs are part of a plan to trim $100 million in costs

McDonald’s Corp. is laying off 63 people at its company headquarters in Oak Brook, Ill. as part of a $100 million cost-cutting and restructuring effort.

The layoffs come as the burger giant struggles with sales, following what has been its worst year in at least a decade.

“McDonald’s is moving with a sense of urgency to improve our financial performance by taking actions based on the long-term,” said a company spokeswoman in a statement. “This includes a diligent review of our corporate home office and McDonald’s USA structures and resources in order to redirect nearly $100 million in savings toward business priorities, such as digital and new restaurant platforms that will support our key growth drivers.”

The spokeswoman added, “As resources are being redirected to business growth priorities, positions have also been created in this initiative.”

The layoffs were revealed in an Illinois layoff notice report published Dec. 31. The notification was termed a “restructuring.” The notice says the layoffs will begin in February.

McDonald’s has made a long list of changes in the past two months, including restructuring its U.S. operations in an effort to turn around sluggish sales.

The company’s domestic same-store sales fell 2.3 percent through November, including a 4.6-percent decline in November — its worst monthly performance in more than a decade.

The weakness prompted the chain to reorganize U.S. operations to give its regions more decision-making power. McDonald’s also created a new marketing campaign, overhauled executive staff, and is working on eliminating some menu items and adding a customization platform called “Create Your Taste.” 

The burger giant is also increasing its digital spending significantly, which includes investing in mobile technology and kiosks. That effort also includes beefing up the company’s digital staff at a new Chicago office from 20 people to between 200 and 250 by the end of next year, according to reports.

Contact Jonathan Maze at [email protected].
Follow him on Twitter: @jonathanmaze

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