The latest indication of economic trouble is in the fast food industry. McDonald’s seems to be planning a major layoff very soon.
The Wall Street Journal reported that the fast-food company has temporarily closed its U.S. offices and is now preparing for layoffs in anticipation of long-expected economic turmoil, including a possible recession. The Journal reports workers who are going to be laid off will be notified electronically.
The Chicago-based fast-food chain sent an email to U.S. employees and international employees stating that it preferred U.S. workers to work remotely between Monday and Wednesday to allow for staffing decisions to be made electronically.
The company said that it would share key decisions about roles and staffing levels within the organization over the week of April 3rd. The Wall Street Journal viewed the message.
McDonald’s declined to comment Sunday on the number of employees being laid off.
The company has been announcing mass layoffs since January. The Journal reports that Chris Kempczinski, Chief Executive, acknowledged that he expected to save money during the workforce evaluation.
Kempczinski stated, “Some jobs that exist today may be moved or eliminated.”
The fast-food chain employs more than 150,000 people worldwide. These include both corporate jobs and those in the company’s restaurants.
This is part of a larger trend in the country, where large companies are cutting back their workforce in preparation for an economic slowdown or complete recession. This can lead to a recession.
The Fed must balance its efforts to prevent a recession and reach its inflation goal of 2 percent. The Fed increased its interest rate by 25 basis points at its last meeting, despite temporary banking crises that occurred in March.
McDonald’s is a global leader in fast food. It plans to reduce its business and abandon some projects to increase efficiency and better use of resources.
