McKinsey to cut 2,000 jobs in latest corporate layoffs
McKinsey is to axe around 2,000 jobs, the deepest cull in the company’s history.
Back office staff are set to bear the brunt of the cuts, according to sources in the consulting giant.
The management team is said to be hopeful that the plan, dubbed Project Magnolia, would help preserve the compensation pool for its partners.
Human resources, technology, and communications would be affected by the restructuring.
The company has rapidly expanded during the last decade and will now try to reorganize its support teams to centralize some of the roles.
The company is still working on the strategy, which will be completed in the next weeks.
It is likely the final number of jobs cut from its 45,000 workforce could change.
But the company said it is still hiring for client serving positions.
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DJ Carella, a company representative, said: “We are redesigning the way our non-client-serving teams operate for the first time in more than a decade so that these teams can effectively support and scale with our firm.”
The current reductions will not hit McKinsey’s legal or compliance departments.
Companies in sectors from finance to technology to retail are laying off employees as demand slows and a recession looms.
McKinsey’s layoffs came less than a week after KPMG announced it was cutting about 2 percent of its staff, or about 700 people in the US.