McDonald’s Corporation (NYSE:MCD), which has been seeing its worst performance the past year, will reduce the number of workforce in its headquarters by 63, according to a report filed by the company with the state of Illinois in compliance with the U.S. Worker Adjustment and Retraining Notification Act. Heidi Barker Sa Shekhem, a McDonald’s spokeswoman, said in a statement that the company estimates a savings of around $100 million from the job cuts.
The lay offs of workers in its headquarters at Oaks Brook, Illinois, will take effect on the 16th of the next month, as McDonald’s Corporation (NYSE:MCD) is taking a sense of urgency to act based on long term goals, according to company statement. The statement noted that such actions will include a review of “corporate home office and McDonald’s USA structures and resources in order to redirect nearly $100 million in savings toward business priorities, such as digital and new restaurant platforms” that will support growth. Workers affected will be provided with severance packages and other assistance, the company said.
McDonald’s Corporation (NYSE:MCD) is known for struggling the past year with its worst performance in a decade. Its U.S. stores have not posted gains since October of 2013. Its global locations, most notably stores in China and Japan, have been plagued with appalling food safety scandals, the most recent of which is the case of human tooth and vinyl plastic in its food products sold in a Japan store.
Known as the world’s biggest fast food restaurant in terms of revenue, McDonald’s Corporation (NYSE:MCD) have about 1,700 employees in its headquarters prior to the job cuts. The company will be using the savings generated from the said cuts in campaigns such as digital marketing and branding. It will also lay out new restaurant platforms, one of which is the “build-a-burger” concept intended to be made available in 2,000 U.S. stores this year.
This article has been written by Nonito Guntan.