(HorizonPost.com) – McDonald’s is preparing to make drastic cuts in their workforce, according to Newsmax. The corporation’s layoffs will rest somewhere in the “hundreds,” an unnamed source familiar with the matter says. The move comes on the heels of restructuring that the company previously announced.
At the beginning of the year, the company reviewed its business strategy, which suggested areas that will experience some layoffs and others that will have some expansion. The current structure reportedly slowed innovation. The layoffs do not reportedly include the 2 million employees working in the restaurants.
The source says that the corporation is doing this “out of respect,” mentioning that when people were fired, they would enter a conference room whose windows were covered for privacy. When the news would break, they would walk back to their desk keeping their head down to collect their belongings. But that was not dignified, the source suggests before saying that more employees will be moving on to new roles and promotions than being fired.
McDonald’s corporation currently employs over 150,000 people around the world, with 70% of its workforce based outside of the United States.
The news reportedly comes as the economy is expected to slow down. The tech industry began to lay off employees last year which has now included retailers and manufacturers. The most recent company to announce layoffs includes Amazon Inc., which eliminated more than 9,000 jobs.
In response to the rising costs in commodities and labor, McDonald’s has raised its food prices. Despite some consumers ordering fewer items and choosing cheaper items, the corporation’s sales have reportedly remained intact.
The company has previously undergone layoffs of this magnitude before. In 2018, McDonald’s looked to cut administrative costs, which resulted in fewer offices by the end of 2019, from 235,000 to 205,000.
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