McDonald's is rallying after report says it's announcing corporate layoffs

REUTERS/Toshiyuki Aizawa

• McDonald's is rallying Thursday after the Wall Street Journal reported the fast-food chain is laying off employees to trim down its corporate structure.
• USA President Chris Kempczinski wrote an email explaining the layoffs to McDonald's employees.
• Watch McDonald's trade in real time here.

McDonald's shares are up 2.08% to $165.75 Thursday morning after the fast-food chain has announced plans to slim down its employee count.

In the midst of these changing industry conditions, McDonald's is planning a round of layoffs in order to shrink its corporate structure, as it attempts to revamp its US business, the Wall Street Journal has reported.

The layoffs are part of a restructuring of its corporate offices around the country, McDonald's USA President Chris Kempczinski wrote in an email to employees, seen be the Journal. "I recognize that change is difficult, and that eliminating layers within our organization means some employees will ultimately exit our system," Kempczinski wrote in the email.

McDonalds has been retooling its product offerings to battle heightened competition in fast-food. It recently introduced a 1,2,3, dollar menu to combat a price war that was emerging from food joints like Wendy's and Taco Bell. McDonald's has also been pushing digital, as it looks to its Uber Eats partnership to boost sales.

Shares are down 4.43% this year.

Check out the full Wall Street Journal story here.

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