McKinsey Layoffs: Consulting Firm To Fire 360 Employees

McKinsey Layoffs: These McKinsey Layoffs are likely to affect approximately 3 per cent of the firm's workforce, consisting of 12,000 specialists or technical experts

McKinsey Layoffs: McKinsey has reportedly started cutting around 360 jobs as the consulting firm grapples with a decline in demand for its services. The layoffs will be carried out globally and impact employees across multiple divisions, including design, data engineering, cloud, and software, according to a Bloomberg report citing sources.

These McKinsey Layoffs are likely to affect approximately 3 per cent of the firm's workforce, consisting of 12,000 specialists or technical experts who collaborate with the company's conventional consultants, as per the report.

“We invest to grow capabilities that match our clients’ priorities and adjust the size of a small number of others as appropriate. As part of this process, some roles will be eliminated within this small number of capabilities,” a spokesperson from McKinsey said in a statement, reveals the report.

According to the report, which cites people familiar with the matter, the layoffs will not impact traditional consultants within McKinsey. According to information on the firm's website, the firm employs more than 45,000 employees in 130 cities worldwide.

Despite achieving a record revenue of $16 billion last year, McKinsey has notified approximately 3,000 consultants that their performance was deemed unsatisfactory and must be enhanced. Additionally, in recent weeks, the company has extended an offer to its UK employees, proposing nine months' pay in exchange for voluntary departure from the company.

“These actions are part of our ongoing effort to ensure our performance management and development approach is as effective as possible and to do so in a caring and supportive way. “A core part of our mission is helping people learn and grow into leaders, whether they stay at McKinsey or continue their careers elsewhere,” a McKinsey spokesperson said at the time.

After the hiring surge prompted by the pandemic's peak, consulting firms found themselves resorting to layoffs as an increasing number of clients deferred longer-term investments. Notably, last month, Accenture experienced a downturn in its shares after cautioning investors about reduced spending from financial services clients on its software offerings.