In addition to layoffs, McDonald’s cost cutting binge includes demoting employees and reducing pay

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McDonald’s reduced some employees’ compensation and titles as part of the restructuring this week that cost hundreds of workers their jobs, according to a person familiar with the situation.

The Chicago-based fast-food giant offered some employees the opportunity to remain on the payroll with changes to their compensation packages, including items such as bonuses and equity awards, said the person, who asked not to be named discussing private information.

McDonald’s closed its offices for a few days earlier this week to have career conversations with all corporate employees, including those being let go.

The company said in January that it planned to cut corporate jobs and eliminate certain initiatives, even as it accelerates new store openings. The job cuts would be final by April 3, McDonald’s said at the time. It had about 150,000 employees at the end of 2022, according to data compiled by Bloomberg.

The Wall Street Journal reported earlier Friday on the changes in compensation packages.

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