Employment Law

McDonald’s tells corporate staff to work remotely ahead of layoffs

mcdonalds-corporate-staff-layoffs

After warning of potential job cuts in January, McDonald’s has temporarily closed some of its offices and asked corporate employees to work remotely.

In a memo to staff that was obtained by multiple news outlets, including Business Insider, the fast food giant instructed its U.S.-based teams to work remotely from April 3-5 so it can “communicate key decisions related to roles and staffing levels across the organization.”

“As shared in January, transforming how we work through Accelerating the Organization (AtO) is a long-term strategy, requiring us to shift from legacy mindsets to new behaviours,” the memo reads.

The company added that it has a clear opportunity to “get faster and more effective at solving problems for our customers and people and to globally scale our successful market innovations at speed.”

The potential layoffs at McDonald’s aren’t expected to only affect corporate employees in the U.S.

International workers have also been told to connect with their “market leadership” to learn more about their local office status.

According to reports, the fast food giant has more than 150,000 employees in corporate roles and at company-owned restaurants. Approximately 70 per cent are based outside the U.S.

Impact on Canadian staff

It remains unclear how many corporate employees in Canada will be affected as McDonald’s looks for ways to enhance its speed, efficiency, and innovation.

The fast food giant has offices in major cities across the country, including Toronto, Montreal, Calgary, and Vancouver.

McDonald’s Canada claims on its website that it employs more than 90,000 people from “coast-to-coast.”

Major layoffs continue

The potential job cuts at McDonald’s come after several major North American companies have announced sweeping layoffs in 2023.

Big names, including Amazon, Accenture, MetaAlphabet, Dell, Clearco, Hootsuite, and Microsoft, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

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Employment lawyer discusses compensation for remote workers
• Layoffs in Canada

Termination agreements for McDonald’s Canada employees

In Canada, non-unionized employees and senior executives at McDonald’s are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
Severance packages in mass layoffs
Rights to severance for provincially regulated employees
Severance pay in a recession 


WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.


Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper compensation if it falls short of what you are actually owed.

If you aren’t given the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.

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