Global consulting firm McKinsey & Co. has announced plans to eliminate approximately 360 jobs globally, affecting around 3 per cent of its specialist and technically-skilled workforce, on April 11.
According to people familiar with the matter, the job cuts will impact employees across various divisions, including design, data engineering, cloud, and software. The reductions are part of the firm’s efforts to adjust the size of certain capabilities to match its clients’ evolving priorities, as pert Bloomberg.
“We invest to grow capabilities that match our clients’ priorities, and adjust the size of a small number of others as appropriate,” a McKinsey spokesperson said in an emailed statement. “As part of this process, some roles will be eliminated within this small number of capabilities,” as quoted by Bloomberg.
The job cuts will not affect McKinsey’s traditional consulting staff, the person familiar with the matter said. The firm has a global workforce of more than 45,000 employees in 130 cities around the world, as per the report.
The move comes as the consulting industry grapples with a slowdown in demand for its services. Following the boom times during the pandemic, when hiring sprees were common, firms like Ernst & Young, PricewaterhouseCoopers, and Accenture Plc have had to resort to job cuts as some clients have scaled back their investments.
Despite generating a record $16 billion in revenue last year, McKinsey has also taken steps to address its performance concerns. The company has warned around 3,000 of its consultants that their performance needs to improve, and has recently offered UK-based employees the option to take nine months’ pay in exchange for their departure.
The job cuts at McKinsey reflect the broader challenges facing the consulting industry as it navigates a shifting economic landscape and evolving client demands.
(With Inputs from Bloomberg)
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Published: 11 Apr 2024, 08:12 AM IST