In an effort to show $500 million in savings by 2017, McDonald's will lay off some employees in the United States in July, reported the New York Post. The move is a part of its CEO Steve Easterbrook's concerted effort to reduce cost at the fast food giant.
Sources told the Post that first of the casualties would be a regional office in Ohio. It cited a May 13 statement sent by the company to its Columbus city staff that said the facility will be closed as part of "plans to permanently restructure its operations and eliminate a number of roles."
As the layoffs begin in July, 70 workers at the facility are expected to lose jobs by the year-end. They are primarily involved in providing support services to restaurants, including accounting functions, which may be packed off to India, sources familiar with news told Post.
"As part of our announced efforts to deliver $500 million in savings by the end of 2017, we are restructuring many aspects of our business, including an accounting function," spokeswoman Terri Hickey told CNBC.
The Illinois-headquartered company's cost cutting exercise will now invite the wrath of those who have often held out against the U.S. companies' policy of outsourcing.
The Post noted that McDonald's has closed 15 of its regional offices across the U.S., and has even franchised many of its company-owned stores. In 2015, the company had laid off 400 employees.
