McKinsey likely to lay off nearly 2,000 employees in biggest job cuts: report
06 March 2023
Management consulting company McKinsey & Company is likely to lay off about 2,000 staffers in one of the firm’s biggest rounds of job cuts, CNBC-TV 18 reported on Wednesday. The job cuts are intended to reduce support staff that don’t have direct contact with clients.
Under the job cuts plan termed ‘Project Magnolia,’ McKinsey looks to restructure how it organises its support teams to centralise some of the roles, the report said.
“With demand from our clients expanding, we continue to hire client-serving professionals and invest in our ability to serve clients. In parallel, we are redesigning the way our non-client-serving teams operate for the first time in more than a decade, so that these teams can effectively support and scale with our firm,” CNBC-TV 18 quoted McKinsey as saying.
McKinsey’s current workforce strength has grown to 45,000 from 28,000 five years ago and 17,000 in 2012, according to a Bloomberg report.
The job cuts that started in technology firms, including Amazon.com Inc and Microsoft Corp, have now spilled over to retail, finance and other sectors amid a global slowdown in demand and predictions of a looming recession.
Goldman Sachs Group Inc, Morgan Stanley and other top banks have been eliminating thousands of positions.
McKinsey posted a record $15 billion in revenue in 2021, and surpassed that figure in 2022, the report added.