Ryan FowlerAmerican multinational McKinsey & Company is set to cut approximately 360 jobs across its design, data engineering, cloud, and software divisions. This decision comes as a response to a decline in demand for consultancy services, a sector that has seen McKinsey reduce its workforce significantly, following the 1,400 back-office and support roles it eliminated last year.
A spokesperson from McKinsey said: “We invest to grow capabilities that match our clients’ priorities, and adjust the size of a small number of others as appropriate. As part of this process, some roles will be eliminated within this small number of capabilities. We will ensure departing colleagues receive support both during and after their transition.”
The layoffs will affect around 3% of the 12,000 workers in the company’s specialist and technical expert roles. Despite the cuts, McKinsey, which operates in over 65 countries, continues to maintain a robust workforce of approximately 45,000 employees, significantly up from 28,000 in 2018.
The firm reported a record $16 billion in revenue last year, but there is an air of caution within the industry about future prospects. According to a report from Source Global Research, while 60% of clients had previously expected to increase their spending on professional consultancy services over the last decade, only about 32% anticipate doing so in 2024, with 56% planning to reduce their expenditure.
This trend is reflected across the consultancy industry, with other major firms like Ernst & Young, PwC, and Accenture also announcing job reductions recently. In March, reports emerged that McKinsey was offering some staff up to nine months’ pay and career-coaching services to encourage voluntary departures.
