McKinsey & Co is preparing to reduce its global workforce over the next two years, even as the global consulting firm celebrates its 100th year in business. The move is part of an effort to control costs after a prolonged period of muted revenue growth and shifting client demand.
According to people familiar with the matter, the firm is considering trimming around 10 per cent of roles in non-client-facing functions. The reductions are expected to be phased over the next 18 to 24 months and could impact several thousand employees across locations. The focus is on support roles rather than consulting staff, signalling a recalibration of the firm’s workforce structure rather than a pullback from client work.
The planned cuts stand in contrast to the upbeat messaging at McKinsey’s centenary celebrations held in Chicago in October, where leadership highlighted confidence in the firm’s long-term direction and future growth. Internally, however, the firm has been reviewing how its operations are structured, particularly as technology and artificial intelligence reshape how professional services are delivered.
McKinsey’s decision follows a decade of rapid expansion. Its global headcount rose sharply from around 17,000 employees in 2012 to nearly 45,000 at its peak in 2022. Since then, staffing levels have already eased to about 40,000. Over the past several years, revenues have largely plateaued, remaining in the range of $15–16 billion annually.
This is not the firm’s first round of retrenchment. In 2023, McKinsey let go roughly 1,400 employees under an internal restructuring initiative. The latest plan suggests further efforts to align costs with growth realities.
Source – https://www.hrkatha.com/news/mckinsey-plans-job-cuts-in-support-functions/