McDonald's Is Closing Some Of Its Offices, And Corporate Layoffs Have Begun

While the Happy Meal can bring smiles around the table, the changes coming to McDonald's corporate structure may not bring a joyful return to the office. Earlier this year, Chief Executive Officer Chris Kempczinski announced that some corporate jobs would be moved or eliminated. As The Wall Street Journal reported, McDonald's U.S. corporate employees were told to work at home until Wednesday, when they would be virtually notified of their employment status. Based on previous corporate statements, these employment changes are not about shrinking corporate expenses. Rather, McDonald's is redeploying its resources as part of the brand's Accelerating the Arches initiative. Exact employee reduction numbers were not released.

According to Barron's, the McDonald's corporate layoffs may not reflect a black cloud hovering over the quick-service restaurant giant. Over the past year, the company has seen a 7% increase in stock price. Analysts believe that the job cuts are a reflection of a corporate redirection, rather than a solution to cost-cutting. Specifically, McDonald's has been able to balance costs and expenses without seeing a huge impact on the consumer. Since the pandemic, the corporation has seen growth and will continue that direction, as seen with strong sales and future restaurant openings. 

While any job loss is unfortunate for the people involved, these restructuring changes might not be felt immediately when ordering that Big Mac. But, for the people who will be saying goodbye to their Hamburger U alma mater, they might not be craving those World Famous Fries for a while.

At beginning of 2023, McDonald's CEO Chris Kempczinksi sent an open letter to employees that alluded to a positive outlook and growth for the iconic quick-service restaurant brand. While the brand has a rich history, it appreciates that its strategic planning cannot be stagnant. Still, it cannot stray far from its core pillars. With Accelerating the Arches, McDonald's still feeds those feel-good moments around the table while pushing growth forward.

The keys to Accelerating the Arches balance staying true to McDonald's core menu while bringing innovation to the customer experience. Burgers and fries will never stray from the menu, but the method of bringing that food to the customer can change. From expanding digital capabilities to maximizing drive-thru efficiency, the experience is as important as the food itself. Given that the brand's purpose is to "feed and foster communities," it's vital to engage with guests in memorable ways.

Although there is change at the corporate level, the focus on the customer experience continues to be a priority. From serving the most flavorful Big Mac to making guests feel more connected to the brand, all of these elements will have people seeing those Golden Arches from afar (and purposefully drive in that direction to place an order). Only time will tell whether the Accelerating the Arches program will speed up McDonald's position in the evolving quick-service restaurant world.