New Delhi: McKinsey & Company has let go of over 5,000 workers globally in the last 18 months. One of the biggest rounds of layoffs in the 98-year history of the multinational consulting behemoth, the move affects more than 10 per cent of its personnel.
This development highlights the ongoing rebalancing of the consulting industry following the COVID-19 pandemic’s dramatic expansion. According to people close to the organisation, McKinsey’s workforce shrank from over 45,000 by the end of 2023 to about 40,000 today.
McKinsey started a significant organisational reorganisation in 2023, starting with the layoff of 1,400 back-office employees. A major change in priorities was indicated later in the year when 400 data and software engineering specialists were let go.
In addition to these cuts, the company tightened its performance management standards, which resulted in further departures, especially from consultants who failed to satisfy the new performance standards.
The industry is currently dealing with a dramatic drop in voluntary attrition after being supported by the “Great Resignation” and pandemic-related transformation initiatives.
To match personnel levels with sluggish project pipelines, companies have been obliged to take more drastic steps, such as official layoffs, as a result of this unanticipated stabilisation in employee turnover.
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