Career
My MBA Career: McKinsey to Cut Hundreds of Jobs
Last Updated on April 12, 2024 by Robert C. Hoopes
Consultancy giant McKinsey has announced plans to cut around 360 jobs in various divisions as a response to a decrease in demand for consultancy services. The affected divisions include design, data engineering, cloud, and software, with traditional consultant roles expected to be unaffected in this round of layoffs. Last year, McKinsey eliminated 1,400 jobs in back-office and support functions.
These cuts are anticipated to impact approximately 3% of the company’s 12,000 specialists and technical experts. Despite this news, McKinsey has seen significant growth over the past few years, currently employing around 45,000 staff globally and generating a record $16 billion in revenue last year.
The consulting industry as a whole is facing challenges, with a decline in clients looking to increase spending on professional consultancy services. While demand for consultants spiked during the pandemic, it has since stabilized, leading to job cuts at other firms like Ernst & Young, PwC, and Accenture.
In response to the layoffs, McKinsey has reportedly offered impacted staff nine months’ pay and career-coaching services to help them transition out of the company. This move highlights the shifting landscape of the consultancy industry and the need for firms to adapt to changing client needs and market conditions.
