The 97-year-old McKinsey & Company has more than 130 offices in over 65 countries and has witnessed an exponential rise in its workers in the last few years.
Global management consulting firm McKinsey will reportedly begin its layoffs as soon as this week. The company’s restructuring plans include the job elimination of 1,400 employees, according to a Bloomberg report.
McKinsey saw rapid growth in its headcount in the last few years, but amid a global economic downturn, the company is now reducing its workforce by around 3%. The New York-headquartered company has nearly 47,000 employees, up from 28,000 five years ago and 17,000 in 2012, the report noted. The move, which is coming under what the company calls Project Magnolia, will likely preserve its associates’ compensation pool.
Additionally, the support staff that does not have direct contact with clients are expected to be the most affected by the job cuts. Apart from workforce reduction, the restructuring would also involve employee transfer into new positions.
Talking about the company, the global management consulting firm – McKinsey & Company – was founded in 1926 by James O. McKinsey, an accounting professor at the University of Chicago. It currently has more than 130 offices in over 65 countries. McKinsey is considered one of the “Big Three” management consultancies, alongside the Boston Consulting Group (BCG) and Bain & Company.
They provide a wide range of services to organizations in various sectors, including business strategy, operations, mergers and acquisitions, risk management, digital transformation, and talent management. McKinsey works with a diverse clientele, including large corporations, non-profit organizations, and governments.
Mackinsey is not the first company to reduce its employee count. In the past, several companies including Mark Zuckerberg-led Meta, Sundar Pichai-led Alphabet, Elon Musk-led Twitter, and Satya Nadella-led Microsoft, among others, have laid off thousands of employees in an attempt to gear up for a global economic slowdown. Walt Disney, Microsoft-owned GitHub, and electric carmaker Lucid are some prominent names that announced job cuts just at the start of this week.