The American multinational fast-food chain, McDonald’s Corporation is temporarily closing some of its US offices as a part of company restructuring.
Reports on Sunday announced that the Burger chain was temporarily planning to close its outlines this week and according to the sources, McDonald’s already sent an international email last week, to both its US employees and a few chosen international workers to ask them to work from home.
Thai decision was taken to ensure the staffing decision is taken virtually. However, no reports on the number of employees to be laid off have been made so far.
In the message sent, the Chicago-based branch told their employees that the decision regarding the staffing levels across the organization would be made in the first week of April. In addition to that, the reports claimed that the authorities also required their employees to cancel all direct meetings with outside parties and vendors at its headquarters.
Three months before this ultimate move, McDonald’s had informed that they will soon review corporate staffing levels which was mandatory to be done as they were thinking of updating their business strategy.
As a result, the burger chain hinted at a potential layoff in certain areas as good expansion in some others. If the previous declarations are something to go by, then McDonald’s is expected to begin making key decisions by today.
Among the 150,000 plus employees employed by the company in its global corporate roles and its subsidiary restaurants, around 70% of them are from different parts of the world outside the US. This specific piece of information was announced by the food chain mogul in February. However, McDonald’s is yet to announce how many employees are going to be laid off.
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The following month, the retailers asserted that the company’s spending was gradually slowing down. Although they highlighted the increased sales, they had told the potential investors that the majority of the consumers were ordering cheaper and fewer items per visit, whereas they used to spend more at the restaurants before.
Contrary to the current layoff, McDonald’s India announced last December that it would hire more than 5,000 people. They declared so because the company authorities had planned to double the number of outlets in the particular regions of North India and East India in the next three years. But there have been no further updates made on this plausible massive recruitment.
Within the current market condition, several companies, particularly the tech giants such as Amazon, Facebook, Google, and others, are trying to encounter soaring inflation and the global economic slowdown.
Individual reports of these companies assert that each of them has significantly scaled their respective operations recently. Other than these giants, the workforce reduction was also reported in tech like Microsoft, Zoom, and Yahoo and enterprises from SaaS to crypto.
In February, Elon Musk’s Twitter made several headlines for laying off a large number of employees in a short time. The tech baron initially laid off 10% of its workforce and continued to send back at least 200 more staff in their second round of cuts.
As per various sources, Twitter has by far gotten rid of around 2,500 people. The layoff began immediately after Twitter chief executive Elon Musk came into power. He sacked about 50% of its employees when he bought Twitter in October.
But Twitter lay-offs made many controversies as many of the employees, even those working at the higher levels, were not properly informed about losing their jobs. Martin de Kuijper, the ex-senior product manager at Twitter said he realized he lost his job after he found that he was logged out of his work emails.
Esther Crawford, one of the influential figures in Twitter 2.0, said in a statement that she was extremely proud of the entire team for keeping up with the noise and chaos. This layoff came right after Reuters reported Twitter had engaged in its foremost interest payment on bank loans from banks such as Barclays and Morgan Stanley.
The loan was purportedly made to finance the Twitter purchase and so Reuters pointed out that it was not a personal liability of Musk, but the responsibility for the loan repayments should entirely be borne by the company itself.
From the $44 billion Musk paid to buy Twitter, $13 billion was taken as a loan. Other than this, the tech company was also reported to have been going through many financial challenges.
Besides Twitter, six other large tech companies including Intel, IBM, and Spotify together laid off as many as 10,000 employees in just eight days.
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