McKinsey to lay off over 350 employees amid slowdown
What's the story
McKinsey & Co., a renowned global consulting firm, has revealed plans to trim approximately 360 jobs worldwide.
This decision will impact nearly 3% of the company's specialized and technical workforce.
The job cuts will span several departments including design, data engineering, cloud, and software as part of the firm's strategy to align its workforce with evolving client needs.
Strategic shift
McKinsey's strategy aligns with changing client priorities
A spokesperson for McKinsey confirmed the firm's strategy to adjust its workforce size in line with client priorities.
The spokesperson stated, "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."
However, these lay offs will not affect the firm's traditional consulting staff.
Industry challenges
Consulting industry faces decreased demand and job cuts
McKinsey's decision to reduce its workforce comes as the consulting industry experiences a decline in demand for its services.
Other firms, including Ernst & Young, PricewaterhouseCoopers, and Accenture Plc, have also had to implement job cuts following a hiring surge during the pandemic.
This trend is due to some clients reducing their investments.
These lay offs underscore the broader challenges affecting the consulting industry as it adapts to a fluctuating economic environment and changing client needs.
Performance concerns
McKinsey grapples with internal performance issues
Despite achieving record revenues of $16 billion last year, McKinsey has been dealing with performance issues within its ranks.
The company has reportedly warned about 3,000 consultants regarding their performance.
In a recent move, UK-based employees were offered nine months' pay in exchange for their departure.
These internal challenges and job cuts at McKinsey highlight the wider struggles faced by the consulting industry amidst shifting economic conditions and client needs.