McKinsey to cut hundreds of jobs as consultancy demand weakens

Office workers.
Office workers. Copyright Canva.
Copyright Canva.
By Eleanor Butler
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The consultancy giant is planning for another series of lay-offs following a pandemic hiring boom.


American multinational McKinsey is preparing to cut around 360 jobs across its design, data engineering, cloud and software divisions.

The move comes in response to a slowing demand for consultancy services, which already pushed McKinsey to axe 1,400 jobs in back-office and support functions last year.

"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 response to the layoffs.

"As part of this process, some roles will be eliminated within this small number of capabilities. We will ensure departing colleagues receive support both during and after their transition."

According to Bloomberg, traditional consultant roles won’t be affected in this round of restructuring.

Cuts are expected to impact around 3% of 12,000 workers across the business' offices who are considered to be specialists or technical experts.

McKinsey, which has offices in more than 65 countries, currently employs around 45,000 staff in total, a jump from a headcount of approximately 28,000 in 2018.

The firm generated a record $16 billion (€14.89 billion) in revenue last year, although there are signs of nervousness within the industry.

For the best part of the last decade, 60% of clients expected to increase their spend on professional consultancy services, according to a report from Source Global Research.

Looking ahead to 2024, the group says that just under 32% of clients anticipate spending more on these services, whilst 56% expect to decrease their spend.

During the pandemic period, demand for consultants jumped as businesses sought to digitalise their operations and react to volatile economic conditions.

Now, as the dust has settled, a number of consulting firms have announced job cuts, notably Ernst & Young, PwC, and Accenture.

In March, the Times reported that McKinsey was even offering some staff nine months’ pay, along with career-coaching services, to leave the firm.

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