McDonald's temporarily shuts US offices, prepares layoff notices: report
McDonald's global headquarters in Chicago's Fulton Market district on December 19, 2019. McDonalds president and CEO Chris Kempczinski will cut his base salary by half as restaurant sales plunged last month due to COVID-19. (Zbigniew Bzdak/Chicago Tr
McDonald's Corp is temporarily closing its U.S. offices this week as it prepares to inform corporate employees about layoffs undertaken by the fast food giant as part of a broader company restructuring, the Wall Street Journal reported.
McDonald's said in an internal email last week to U.S. employees and some international staff that they should work from home from Monday through Wednesday, so it can deliver staffing decisions virtually, the report said.
"During the week of April 3, we will communicate key decisions related to roles and staffing levels across the organization," the company said in the message viewed by The Wall Street Journal.
The burger corporation did not disclose how many employees it is planning to lay off during the company's restructuring.
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In January, CEO Chris Kempczinski warned employees that "difficult discussions and decisions" are on the horizon.
Kempczinski made the revelation in a message to global employees announcing the company's updated business strategy, Accelerating the Arches 2.0, which includes a reshuffling and possibly cutting positions as a way for the company to become more efficient and innovative and to trim costs.
"[W]e will evaluate roles and staffing levels in parts of the organization and there will be difficult discussions and decisions ahead," the CEO wrote, adding that the company plans to inform impacted workers by April 3.
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"Some jobs that are existing today are either going to get moved or those jobs may go away," Kempczinski told the Wall Street Journal in a January.
He told the outlet that he does not currently have a set dollar amount he aims to save or a number for how many positions might be cut.
As part of its updated plans, McDonald's will also accelerate the pace of its restaurant openings, and said it may test more new concepts aimed at convenience for customers like the Order Ahead Lane offered at a recently-opened Forth Worth, Texas, location.
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On Thursday, March 30, McDonald's shares closed on a record high.
David Zanoni, financial author and Seeking Alpha contributor said the fast-food chain’s $277.79 closing price on Thursday was a result of analyst upgrades of earnings per share over the last three months from $10.49 to $10.58 in 2023 and from $11.44 to $11.70 in 2024.
The fast-food chain had just over 40,000 restaurants globally at the end of 2021, according to its most recent annual report, with more than 13,000 U.S. locations.
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McDonald's did not immediately respond to Fox News Digital's request for a comment.
Fox Business' Breck Dumas contributed to this report. Read more of this story on FOX Business.