By Jessica DiNapoli and Hilary Russ
NEW YORK (Reuters) – The number of corporate employees McDonald’s Corp plans to lay off this week will tally in the “hundreds,” a source familiar with the burger chain’s thinking said on Monday, as the company moves forward with a previously announced restructuring.
The fast-food company is closing its offices “out of respect,” and to “provide dignity, confidentiality, and comfort to our colleagues,” said the source, who was not authorized to speak to the media.
“It used to be that folks would be called into a conference room with the windows papered over and then have to walk back to their desk to collect their personal belongings and leave with their head down,” the source said.
McDonald’s will have more employees going into new roles this week or receiving promotions then being laid off, the source added. The chain known for its Golden Arches has more than 150,000 employees globally, with about 70% based outside of the United States, including in company-owned restaurants.
The layoffs do not include the more than 2 million worker in franchised McDonald’s restaurants around the world.
Chicago-based McDonald’s did not immediately return a request for comment.
McDonald’s said in January that it would review corporate staffing levels as part of an updated business strategy, which could lead to layoffs in some areas and expansion in others.
As part of updating its strategy, McDonald’s also plans to build new restaurants. It has hiked prices on its menu over the last year as commodity and labor costs have soared.
(Reporting by Jessica DiNapoli and Hilary Russ in New York; Editing by David Gregorio)