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Consulting giant McKinsey will carry out 1,400 rare job cuts

By Nithya Bose in US business news, posted March 29, 2023

McKinsey has confirmed it 1,400 job cuts starting this week in a rare round of layoffs.

The company is to reorganize its support teams, which includes staff downsizing or moving employees to other roles.

Total losses will equal around three percent of the global workforce, jumping to about 47,000 from 28,000 five years ago and 17,000 in 2012.

Bob Sternfels, the global managing partner, said: “The painful result of this shift is that we will have to say goodbye to some of our firm functions colleagues, while helping others move into new roles that better align to our firm’s strategy and priorities.

“Starting now, where local regulations allow, we will begin to notify colleagues who will depart our firm or be asked to change roles.”

McKinsey has grown massively over the last decade and rarely conducts layoffs in its own ranks.

Underperforming staff in client-facing positions are more likely to quit after being “counseled to leave.”

What this means is the company decides to move them from client project and wants them to find jobs elsewhere.

Sternfels said the company is “implementing reductions through attrition or voluntary departures.”

Sources said the firm known for designing staff reduction plans for its clients had been considering terminating about 2,000 employees.

They added that the number of people removed could still change.

Most of the impacted roles don’t have direct client interaction.

Accenture recently disclosed 19,000 layoff plans to occur over the next 18 months, in one of the biggest cuts in the industry.

Companies in sectors from finance and technology to retailing are shrinking their workforce amid a slow demand and forecasts of an impending recession.

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Big Tech firms Amazon and Microsoft are slashing workers en masse.

The financial sector is also undertaking similar moves, with top banks, including Goldman Sachs and Morgan Stanley cutting thousands of jobs.

Facebook parent Meta has conducted two rounds of massive job losses.

A McKinsey spokesperson declined to comment on the cuts.

Source: Bloomberg

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