One of the largest sets of layoffs ever for the consulting behemoth will see McKinsey & Co. shed nearly 2,000 positions. According to those with knowledge of the situation, the company known for creating staff reduction plans for its clients is laying off some of its own employees, with the move expected to concentrate on support staff in positions that don’t have direct client interaction.
According to the people, who asked to remain anonymous because the conversations involved non-public information, the management team is hoping the action will aid in maintaining the compensation pool for its partners under a plan known as Project Magnolia. The company, which has experienced rapid headcount growth over the past ten years, is looking to change how it organizes its support teams to centralize some of the functions.
The plan is anticipated to be completed in the upcoming weeks, and one of the persons said the precise number of positions to be cut from its 45,000 employees may yet alter. This number has increased from 17,000 in 2012 and 28,000 just five years ago.
“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,” DJ Carella, a company representative, said in an emailed statement. Carella said the firm is still hiring professionals who deal directly with clients.
According to one of the persons, the company generated a record $15 billion in sales in 2021 and even more in 2022.
