McDonald’s (NYSE:MCD) is closing its U.S. offices temporarily this week as it gets ready to inform its corporate employees about layoffs, as per a Wall Street Journal report. The move is part of the fast-food chain’s efforts to control costs.
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The company has requested its U.S. employees and some of its international staff to work remotely until Wednesday. Additionally, McDonald’s asked staff members to cancel any in-person meetings with vendors at the headquarters.
Earlier this year, McDonald’s CEO Chris Kempczinski stated that a workforce assessment would be conducted to cut some initiatives and jobs. The business also planned to open more stores in order to increase its global footprint.
Layoffs Across Sectors
The current macroeconomic scenario has resulted in many companies announcing workforce reductions. Initially, the tech sector announced heavy layoffs, which were soon followed by companies from other sectors.
The manufacturer of electric vehicles, Lucid Group (LCID), announced last week that it would trim its workforce by 18%, or 7,200, by July. Additionally, 200 workers at Walmart (WMT) facilities in Texas, California, Florida, New Jersey, and Pennsylvania have been asked to look for other jobs.
Is McDonald’s Stock a Buy or Sell?
On TipRanks, MCD stock commands a Strong Buy consensus rating based on 21 Buys and five Holds. The average stock price target of $295.85 implies 5.8% upside potential. Shares of the company have gained 6.4% so far in 2023.
