McDonald's Corp. announced Wednesday it will slash 525 jobs, or 23 percent of its headquarters staff, in the fast-food chain's first layoffs in its 43-year history.
The chain said the cuts from its staff of 2,300 during the next 18 months are being made to boost productivity and reduce costs. Most of the cuts will come through buyouts and early retirement. The chain is based in Oak Brook, Ill.Some employees had been told during the past few weeks that their positions were being eliminated, and they were offered incentive packages to leave, several newspapers reported.
"While eliminating jobs is a painful process, both personally and culturally, it is necessary to make these changes," McDonald's president and chief executive-elect Jack Greenberg told employees Wednesday.
Analysts have said the cuts, which McDonald's earlier this year revealed were being considered, also serve as an important message to Wall Street that the company has changed its ways and is willing to be forward-thinking.
McDonald's stock had languished in the doldrums most of last year amid perceptions the company is out of step domestically, serving less-than-tasty food and antagonizing franchisees.
But its stock rose to a 52-week high this year after it introduced its "Made for You" just-in-time food ordering system to serve hotter, fresher food and moved to address franchisee complaints.