Global Consulting Giant McKinsey to Cut 2,000 Jobs After Aggressively Adding Headcount in Recent Years

Global consulting giant McKinsey & Co is planning to cut as many as 2,000 jobs, as it focuses on restructuring the organization and cutting the flab in the support roles. The job cuts will not affect employees who are in client-facing roles, reports said. McKinsey also confirmed that it is still hiring professionals for roles that directly deal with clients.

"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," company representative DJ Carella said in an emailed statement, according to Bloomberg News.

McKinsey McKinsey

The job cuts come after the global behemoth that advises corporations on a whole gamut of business affairs posted more than $15 billion in revenues in 2022. According to a Bloomberg report, McKinsey's revenue in 2021 was $15 billion, which it surpassed last year.

McKinsey has around 45,000 employees at the moment. The company had added headcount at a frenetic pace in recent years. The total staff strength was 28,000 just five years ago and around 17,000 in 2012.

Project Magnolia

The job cut plan is part of a broad restructuring plan titled Project Magnolia, the report says. One of the aims of the job cull is to 'preserve the compensation pool of McKinsey's partners.

The current round of layoffs is perhaps the biggest ever job cuts by McKinsey's. It comes nearly two years after Bob Sternfels became the global managing partner. He was named the global managing partner after the more than 600 McKinsey partners voted to oust Kevin Sneader.

Another consulting giant, KPMG, is reportedly cutting around 2 percent of its its workforce in the United States, the FT had reported earlier.