McDonald's is laying off 63 employees in its corporate operations, the majority of whom work at its Oak Brook headquarters, a spokeswoman confirmed today.
The layoffs, part of a $100 million cost-cutting effort, affect workers across several departments and take effect Feb. 16, spokeswoman Heidi Barker Sa Shekhem said.
The burger giant plans a second round of job cuts in the first quarter that will affect workers in its U.S. operations, Barker Sa Shekhem said. She declined to say when those layoffs would take place or how many people would lose their jobs.
McDonald's also eliminated an unspecified number of open positions, Barker Sa Shekhem said.
“McDonald's is moving with a sense of urgency to improve our financial performance by taking actions based on the long term,” the company said in a statement today. “This includes a diligent review of our corporate home office and McDonald's USA's structures and resources in order to redirect nearly $100 million in savings toward business priorities.”
The company has said it intends to use those savings to invest in a digital marketing and branding campaign and to support new restaurant platforms, such as the build-a-burger concept it is rolling out to 2,000 U.S. locations this year.
“It is important to note that as resources are being redirected to business growth opportunities, positions have also been created in this initiative,” the company said.
Before the job cuts, McDonald's employed about 1,700 in its corporate offices.
The Oak Brook-based fast-food giant, which has reported U.S. same-store sales declines for seven straight months, said in December that the sales fell 4.6 percent in November, the worst performance in more than a decade.
McDonald's shares were up $1, or 1.1 percent, at $93.40 in midday trading. That's well below its 52-week high of $103.78 in May.