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The American economy has never completely recovered from the COVID shutdown and the “rescue plan” that just dumped cash in people’s pockets and inflated everything. The latest news from McDonald’s corporate offices shows how shaky the economy truly has become.
Just add the Golden Arches to the latest line of companies starting layoffs.
McDonald’s Corp. is temporarily closing its U.S. offices this week as it prepares to inform corporate employees about layoffs undertaken by the burger giant as part of a broader company restructuring.”
The Chicago-based fast-food chain said in an internal email last week to U.S. employees and some international staff that they should work from home from Monday through Wednesday so it can deliver staffing decisions virtually. The company, in the message, asked employees to cancel all in-person meetings with vendors and other outside parties at its headquarters.”
“During the week of April 3, we will communicate key decisions related to roles and staffing levels across the organization,” the company said in the message viewed by The Wall Street Journal.”
McDonald’s declined to comment Sunday on the number of employees being laid off.”
I should point out that this is happening at the corporate level, not the franchise level.
McDonald’s employs more than 150,000 people globally in corporate roles and its owned restaurants, with 70% of them located outside of the U.S., the chain said in February.”
McDonald’s in the message acknowledged that the week of April 3 would be a busy one for personal travel, which it said contributed to the decision to deliver the news remotely. Workers who wouldn’t have access to a computer during the week should provide personal contact information to their manager, the company said.”
“We want to ensure the comfort and confidentiality of our people during the notification period,” the company said.”
There’s nothing that will make shareholders more confident in the future of a long-standing brand, than seeing corporate offices shut down while employees receive emails to tell them whether or not they will have a job next week, apparently. What will the news of “corporate restructuring” do to the stock price, which apparently had a record high just last Thursday? And the effects of corporate layoffs are sure to trickle down throughout the company, where franchise owners are already having trouble hiring and keeping young employees. And yes, the robots are coming.
McDonald’s has now taken the initiative to make the lives of their customers easier and more convenient by introducing technology-driven solutions.”
The business is opened its first fully functional-based technology restaurant, making it possible for North Texas residents to access their meals without having to interact with a person – only with a robot.”
Several videos have circulated on social media showing the restaurant without any seating or dining areas, indicating the restaurant is just a grab-and-go establishment.”
But what does McDonald’s slimming down their corporate employees mean for the American economy as a whole? Well, this is just another example of companies beginning to tighten their belts. The cuts have been coming from huge companies like Amazon and Disney, but everyone is looking to make their companies run leaner in an economy where everyone is having to spend more, just to keep up with inflation.
And speaking of spending more, prepare to open your wallets even more this summer.
BREAKING: Saudi Arabia says it will cut oil production by 500,000 barrels per day from May until the end of 2023. The move would likely raise oil prices, further straining relations between Riyadh and Washington as the world copes with inflation. https://t.co/FOgr0zdirP
— The Associated Press (@AP) April 2, 2023
Oh yes, Biden sure made a great impression on the Saudis and OPEC, didn’t he?
Saudi Arabia announced the biggest cut among OPEC members at 500,000 barrels per day. The cuts are in addition to a reduction announced last October that infuriated the Biden administration.”
The Saudi Energy Ministry described the move as a “precautionary measure” aimed at stabilizing the oil market. The cuts represent less than 5% of Saudi Arabia’s average production of 11.5 million barrels per day in 2022.”
Iraq said it would reduce production by 211,000 barrels per day, the United Arab Emirates by 144,000, Kuwait by 128,000, Kazakhstan by 78,000, Algeria by 48,000 and Oman by 40,000. The announcements were carried by each country’s state media.”
And with the Biden administration intentionally hamstringing any attempts to be energy independent, that means gas prices are going to be going up.
The production cuts alone could push U.S. gasoline prices up by roughly 26 cents per gallon, in addition to the usual increase that comes when refineries change the gasoline blend during the summer driving season, said Kevin Book, managing director of Clearview Energy Partners LLC. The Energy Department calculates the seasonal increase at an average of 32 cents per gallon, Book said.”
So with an average U.S. price now at roughly $3.50 per gallon of regular, according to AAA, that could mean gasoline over $4 per gallon during the summer.”
So no one is going to be able to afford McDonald’s after filling their gas tank. Sounds great! The robots will begin to take more of the entry level jobs, middle management will be back on the job market, gas will be so expensive that Pete Buttigieg and Jennifer Granholm will continue to ask why people just don’t buy the electric cars (even though there aren’t enough charging stations – and sometimes they’re broken), and Joe Biden will probably try throwing more oil from the Strategic Petroleum Reserve into the market until it’s tapped out.
That kind of uncertainty is sure to have a fantastic effect on the economy, right? After all, Janet Yellen totally knows what she’s doing and the banking system is completely fine! Meanwhile, the media are yelling “SQUIRREL!” and pointing at Donald Trump, so no one has the time to contemplate just how stalled out the economic future has become under Joe Biden.
At least, until you get to the gas pump, or a robot hands you a Happy Meal.
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Blackwing1 says: McDonald’s went “woke” (it was referred to then as “factually incorrect, but politically correct”) when they stopped making decent french fries. Eliminating the beef tallow from their premier product was the beginning of the end. They did it to kowtow to the “vegetarian” and “vegan” fascists, who never freakin’ well ate at Mickey D’s anyway, and this is the end result of every step down the woke ladder to disaster.
We used to rarely stop at a McD’s on mornings when we got going early and didn’t want take time to make a breakfast, and pick up a Sausage McMuffin w/egg and some hash browns for what was a semi-reasonable price. Now? We simply can’t afford to eat a McDonald’s breakfast since it’s not worth what you get anymore. Heck, we’d rather get up an hour earlier and have a sit-down breakfast at the local B-B-Q place for about the same price, and 5 times the value.
I won’t even go into how a McD’s job used to be a typical first job for teenagers, and a fill-in job for seniors. The Marxist/collectivist/statist/authoritarian push for an ever-higher minimum wage has pretty much eliminated that. What they forget is that the true minimum wage is ZERO once they’re replaced with robots. It used to be that food service employment were jobs that couldn’t be outsourced to low-cost labor countries; not so much any more.
What am I saying…Nah, they didn’t forget, this is part of the plan to put everybody on the dole, and make them grateful for what the benevolent government metes out to them. It’s so much easier to please beggars than it is employed citizens. Literally everything they do is about power and control over others (but never themselves).
Liz says: I didn’t know McDonalds stopped using animal lard by choice. I thought it was a federal mandate like the coconut oil in theatre popcorn (which happened later).
All the chains seemed to change at the same time. And yes, they went from having the best fries on the planet to garbage. Independent restaurants often use the good stuff. Also, when we lived in Italy they used lard as well (ambrosial).
Liz says: A lot of food chains are in trouble right now. And other franchises for that matter.
The local Anytime fitness has signs in the bathroom that it has stopped providing shower soap “due to inflation”. Shower soap. At a gym.
I have no idea how just about anyone stays in business now.
Stephen c says: Push us into war, destroy the dollar, poison our values, censor the constitution, introduce fear. All for a bowl of ice cream.
EA says: “We want to ensure the comfort and confidentiality of our people during the notification period,” the company said.”
“McDonald’s has now taken the initiative to make the lives of their customers easier and more convenient by introducing technology-driven solutions.”
Hopefully, the Communications Team at HQ is the first to go. But, at least they want the end of employment for their co-workers to be comfortable and confidential. And those robots that will be replacing people, that’s to make to our lives ‘easier and more convenient’. Sure.
One of the banks that I use, that is in the process of ‘consolidating physical locations’ (again, for MY convenience), sent me a follow up survey after a recent visit to the branch closest to me (which they are closing). To the question of how likely it is that I would recommend this bank to family and friends, I responded with a 5/10. Asked why I selected that value, I responded that since every bank is going online (nearly only) and all offered indistinguishable services from one another, what difference does it make which one I use? Why prefer one over another? Isn’t it ‘easier and more convenient’ when there’s no difference implicated in any decision?
Jeff says: Screw McD’s. We finally got Whataburger here in the KC Metro area. Whataburger beats the arches hands down.
Patrick McNally says: A natural question here is how much of this is due to economic bailouts versus forcing the police to stay away from crime scenes. Here in Haines City, Florida, I haven’t seen any obvious rise in crime. But there are certainly some places where your local McDonald’s is more likely to have higher risks of crime than it would have in 2020. But the police have been told that it’s racist to do anything. How much of this downsizing is the result escalating crime?
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