McDonald’s Corp.’s job cuts are spreading through the entire company and will likely result in hundreds of layoffs and compensation reductions, according to a Friday report.
The Wall Street Journal, citing sources close to the matter, reported Friday that layoffs were moving company-wide, and more employees were being offered reduced compensation to remain. Earlier in the week, the Journal reported the fast-food giant was closing corporate offices to prep for the cuts, and that McDonald’s
MCD,
+0.31%
would also reduce an untold number of compensation packages.
McDonald’s currently employs about 150,000 worldwide, so a shedding of 1,000 jobs would account for less than 1% of staff. Coincidentally, the tech sector has reduced its collective rolls by about a McDonald’s of employees since the beginning of 2023.
Read: More than 157,000 tech-sector employees have lost their jobs since the start of 2023
With markets closed for Good Friday, McDonald’s shares finished the shortened week Thursday up 1.2% to close at a record high of $282.89 a share, while the Dow Jones Industrial Average
DJIA,
+0.01%
— which counts McDonald’s among its 30 components — gained 0.7%, the S&P 500 index
SPX,
+0.36%
slipped 0.1%, and the tech-heavy Nasdaq Composite Index
COMP,
+0.76%
shed 1.1%.
McDonald’s stock price has rallied 22.6% since the end of September, snapping three quarters of consecutive losses, and building upon a third quarter of consecutive gains. Similarly, the Dow has gained 16.6%, the S&P 500 has grown 14.5%, and the Nasdaq has increased 14.3%.
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