Narayan AmmachchiHeads are about to roll at McKinsey & Company as the firm faces the pressures of diminishing demand for its consultancy services, particularly among clients in developed economies.
McKinsey is reportedly preparing to lay off hundreds of its workers. Aproximately 400 positions related to design, data engineering, cloud and software development are expected to be cut from the company. Consultants can rest easy, however, due to their roles being core to McKinsey’s business.
Sources suggest that McKinsey’s decision to downsize comes down mainly to cost-cutting measures. Tighter budgets among clients have impacted McKinsey’s financials too, pushing the company to tighten its own spending.
Previously, it was reported that McKinsey was offering attractive severance packages to workers who quit voluntarilly. It seems like few took the company on its offer due to a lack opportunities in their specific fields at the moment.
McKinsey’s finances remain robust despite what the layoffs may signal. The company reported record revenues of US$16 billion for 2023. The firm currently employs around 45,000 people in 65 countries. Its workforce doubled over the past five years, growing from 28,000 to 47,000 in that period.
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