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McDonald’s layoffs tied to restructure of US field operations

McDonald’s layoffs tied to restructure of US field operations

Severance packages will result in $80 million to $90 million in pre-tax charges

McDonald’s has announced plans to restructure its operations, leading to corporate cuts less than a week after the quick-service burger operator officially relocated to its new headquarters in Chicago.

The company declined to reveal on Tuesday how many employees will be laid off as a result of a major restructuring plan. The changes are designed to “enhance the operating model, better support franchisees, and create a more dynamic and nimble organization,” McDonald’s said in a statement to shareholders.

Part of the plan includes eliminating the company’s regional office structure for U.S. operations. Instead, McDonald’s will have field offices. The company also plans to invest resources for technology and field consulting.

“This Field First structure is a significant shift in how we will incentivize our team, resource our system, and even how we operate here at home office to better support our franchisees and restaurants,” Chris Kempczinski, president of McDonald’s USA, said in a statement to Nation’s Restaurant News. “We are confident these changes will help us support our business plan and turn good ideas into great customer experiences faster than ever.”

The U.S. division is projected to complete the field-level transition in the third quarter. As a result of the organizational changes, which include severance packages for impacted employees, McDonald’s will record a pre-tax charge of about $80 million to $90 million in the second quarter. Other costs include charges tied to closing certain field offices, the company said.

Last week, McDonald’s held a grand opening celebration to mark the company’s return to downtown Chicago. The new headquarters is on the site of Oprah Winfrey's former Harpo Studios. The company was previously based in Chicago from 1955 through 1971.

Contact Nancy Luna at [email protected] 

Follow her on Twitter: @FastFoodMaven

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