Moneycontrol PRO
HomeNewsBusinessMcKinsey starts hundreds of job cuts as client demand slows

McKinsey starts hundreds of job cuts as client demand slows

The reductions are global and will affect employees across a variety of divisions including design, data engineering, cloud and software, according to people familiar with the matter

April 11, 2024 / 11:44 IST
McKinsey & Co. to cut 360 jobs globally due to decreased demand, impacting divisions like design, data engineering, cloud, and software.

McKinsey & Co. is beginning to eliminate roughly 360 jobs as the consulting giant deals with a slowdown in demand for its services.

The reductions are global and will affect employees across a variety of divisions including design, data engineering, cloud and software, according to people familiar with the matter.

The cuts are expected to impact about 3% of the 12,000 staffers who are considered specialists or have technical expertise that work alongside the firm’s traditional consultants, one of the people said, asking not to be identified discussing personnel information.“We invest to grow capabilities that match our client’s priorities and adjust the size of a small number of others as appropriate,” a McKinsey spokesperson said in an emailed statement.

“As part of this process, some roles will be eliminated within this small number of capabilities.”Traditional consultants won’t be affected by the dismissals, the person familiar with the matter said. McKinsey has more than 45,000 staffers in 130 cities around the world, according to its website.

The firm, which has also been battling fierce political backlash in the US for its work in Saudi Arabia and China, has advised a wide range of organizations from the US Pentagon to China’s Ping An Insurance (Group) Co.

After the boom times of the pandemic spurred hiring sprees across the consulting industry, firms including Ernst & Young and Price  water house Coopers have more recently had to turn to job cuts as a growing number of clients shelve longer-term investments.

Last month, Accenture Plc shares tumbled after the company warned it’s seen financial-services customers pull back their spending on its software.

McKinsey generated a record $16 billion in revenue last year. Still, the firm has warned about 3,000 of its consultants that their performance was unsatisfactory and will need to improve. The company in recent weeks has also offered UK staffers to take nine months pay in exchange for their departure.

Bloomberg
first published: Apr 11, 2024 11:44 am

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347