McKinsey Company plans to shed 2000 jobs

The management consulting firm, which has painstakingly added 17,000 heads to its workforce within the past five years, is considering a job cut of as many as 2,000 back-office roles. If taken into action, this will be the largest round of layoffs in the company’s entire history.

Although McKinsey & Co. has to still precisely state the exact number of job cuts, sources have revealed information that suggests that the cuts could start at a few hundred and may even go up to several thousand.

According to what was announced on Tuesday, the consultancy firm is redesigning the operation of its non-client-serving teams for the first time in over ten years. The motive is to get these teams to effectively support the employer and scale alongside the firm. However, the announcement did not provide any further details. Bloomberg was the first to spread the news of these job reductions.

According to insider sources, McKinsey’s human resources, technology, and communications departments would be hit the hardest by the restructuring. The firm scaled up its legal and compliance teams to successfully maneuver the scandals of the business’s work for opioid manufacturers and its involvement with corruption in South Africa. Hence, these teams would not be affected by the job cuts.

According to another source, the management consulting firm has slowed down hiring for back-office roles. McKinsey would not be the only consultancy to take this step. As predicted by senior industry executives, many consultancies would go about cost control by trimming their back-office operations.

However, the employer will keep hiring for client-serving roles as stressed by the firm. The demand for these services remains strong. McKinsey has added 17,000 members to its staff within the past half-decade, and now possesses a global workforce of 45,000. More than half of these jobs are in client-facing roles.

Although the firm has not released precise numbers yet, it surpassed its record $15 billion in revenue in 2021, in 2022. This news of a potential layoff at McKinsey comes before even a week has passed since the accounting group KPMG announced a job cut of 700 people. This affects almost 2% of its staff in the US. With these layoffs, McKinsey will become the latest addition to the growing list of Wall Street giants who shed workforce to battle costs.

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