|
McDonald's to lay off 525
|
 |
June 17, 1998: 6:25 p.m. ET
Company to slash headquarters staff by 23 percent in first-ever job cuts
|
NEW YORK (CNNfn) - McDonald's Corp. announced plans Wednesday to cut almost a quarter of workers at its headquarters staff, marking the first-time the fast food giant has laid off workers in its 43-year history.
McDonald's is giving pink slips to about 525 workers at its Oak Brook, Ill., headquarters over the next 18 months. The job cuts represent 23 percent of the 2,300-member home office staff.
The company said the cuts will boost productivity and decrease costs. Officials said retirements and voluntary severance would account for most of the layoffs. Severance packages will be offered to those affected.
McDonald's expects to take an unspecified one-time charge in the second quarter. The chain will announce the amount of the charge in mid-July.
McDonald's President and Chief Executive Officer-elect Jack Greenberg, said the cuts were necessary to help the chain compete and grow in the future.
"While eliminating jobs is a painful process -- both personally and culturally -- it is necessary to make these changes to refocus and realign with our restaurants and, where appropriate, bring home office resources closer to them," Greenberg said.
Last July, the company reorganized into five divisions and shifted many support jobs from the headquarters to division offices.
The cuts were announced after Wednesday's market close. McDonald's (MCD) shares closed up 1-5/16 to 65-7/16.
(Click here for a 52-week stock chart)
That's down slightly from its 52-week high of 67-15/16, set after the company announced a new "just-in time" ordering system designed to ensure food was kept fresh.
|
|
|
|
|
|
McDonald's
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
