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McKinsey & Co. Announces 360 Global Layoffs

By Nithya Bose in Business News, posted April 11, 2024

McKinsey & Co. has started laying off approximately 360 employees globally in response to diminishing demand for its consulting services.

These job cuts are targeted at multiple departments like design, data engineering, cloud, and software.

About three percent of its 12,000 specialized staff with technical skills, who work alongside the firm's traditional consultants, will be impacted.

This move is part of McKinsey's strategy to realign its workforce with its clients' evolving priorities, necessitating adjustments in certain areas while continuing to invest in others.

The company clarified that these reductions would not affect its traditional consultants.

With a workforce exceeding 45,000 people spread across 130 cities worldwide, McKinsey remains a formidable presence in the consulting industry.

The firm has faced scrutiny in the US over its projects in Saudi Arabia and China.

However, it continues to serve various clients, including significant entities like the US Pentagon and China’s Ping An Insurance Group.

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The consulting sector at large has seen a shift from expansionary hiring trends during the pandemic to more recent contractions.

Firms like Ernst & Young and PricewaterhouseCoopers have also laid off staff as clients defer long-term investments.

This trend is further exemplified by Accenture Plc's recent announcement that its financial services clients are decreasing their spending on software solutions.

Despite generating record revenues of $16 billion last year, McKinsey has issued performance improvement notices to around 3,000 consultants.

Additionally, the firm has proposed a voluntary departure scheme for its UK employees, offering nine months of pay for those who choose to leave.

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