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McKinsey & Co Offers Staff Nine Months’ Pay To Leave

By Nithya Bose in Business News, posted April 3, 2024

McKinsey & Co. has proposed some of its UK staff accept nine months of salary to leave the company voluntarily.

The consulting giant is offering "pay and career-coaching services", to some of its UK employees who want to leave.

First reported by The Times, this move is to navigate a declining client demand.

This has led to reduced hiring and delayed start dates across the consulting industry.

A company spokesperson said: “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.”

The Times cited sources saying McKinsey's proposal targets both engagement managers, who oversee consultant teams on client assignments, and associate partners.

The exact number of staff eligible for this offer remains undisclosed.

However, the company extended similar proposals to US-based employees as well.

“A core part of our mission is helping people learn and grow into leaders, whether they stay at McKinsey or continue their careers elsewhere”

McKinsey generally encourages underperforming client-facing employees to seek opportunities outside the firm, a practice known as being “counseled to leave.”

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This initiative targets employees in good standing, offering them a payout to exit.

Those accepting nine months of payout should still leave even if they can’t find a new job within that period.

Last year McKinsey announced job losses, where about 1,400 positions were cut, mainly affecting support roles.

These cuts represented a three percent reduction in a workforce that had grown massively over five years.

Despite these changes, the company intends to continue active recruitment and hiring.

McKinsey, which reported a record $16 billion in revenue last year, has recently reaffirmed its leadership by reelecting Bob Sternfels as the global managing partner.

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