The exact extent of the job cuts is yet to be confirmed, but could range from anywhere between several hundred and 2,000. This could amount to 4.5% of the company’s 45,000 global workforce.
The announcement, first reported by Bloomberg, comes after McKinsey slowed down hiring of back-office staff in recent years.
McKinsey told the Financial Times it is “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."
Despite the cuts, consultant recruitment remains strong with demand for highly skilled client services professionals high. So strong in fact that McKinsey recently announced a huge bump in starting salaries for MBA and master’s hires, alongside other Big Three management consulting firms, Bain & Company and Boston Consulting Group.
These pay rises for consultants are among the largest in two decades for the Big Three as they compete for high-level hires in a tight labor market.
The back-office job cuts come amidst an onslaught of headcount reductions across Big Tech firms including Amazon, Microsoft, and Google, as well as in the finance sector, with many of the world's largest companies dealing with a difficult economic environment in 2023.
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