Retrenchments come amid declining demand for services
McKinsey & Co. is laying off more than 300 employees, according to reports, joining the list of firms that are retrenching staff this year.
Bloomberg reported that roughly 360 employees, or about three per cent of its 12,000-strong workforce worldwide, would be impacted by the cuts.
A spokesperson from the management consulting firm confirmed to Bloomberg that there will be an adjustment to a "small number" of capabilities to match their clients' priorities.
"As part of this process, some roles will be eliminated within this small number of capabilities," the spokesperson told Bloomberg.
Traditional consultants won't be affected by the cuts, said the report.
Affected employees will come from a variety of divisions, such as design, data engineering, cloud and software, according to the report, which cited people familiar with the matter.
Previous reduction efforts
The layoffs come as McKinsey & Co. offered nine months of pay, career-coaching services, and other resources to some employees in the UK in exchange for departing the firm, according to reports early this month.
Bloomberg said the layoffs were announced after hiring sprees by McKinsey & Co. and other consulting firms, during the pandemic.
But with demand for their services tumbling, these organisations have been trimming their workforce to tackle the decrease.
McKinsey & Co. now joins the list of organisations across the world carrying out layoffs this year, indicating that the past few years of retrenchments are not likely to slow down.
