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McKinsey to cut up to 2,000 jobs in back office restructuring

McKinsey may cut as many as 2,000 back-office staff as the global consulting firm embarks on one of the largest rounds of cuts in its history.

The exact number of job cuts has not yet been determined, but it could range from hundreds to thousands, people familiar with the matter said.

of consulting It confirmed on Tuesday that it will “redesign, for the first time in over a decade, how we operate our non-client service teams, so that they can effectively support and scale our company,” but we have no further details. Bloomberg first reported the job cuts.

The restructuring will affect departments such as human resources, technology and communications, according to people familiar with the matter.McKinsey Legal & Compliance Team opioid manufacturers Links to Corruption in South Africa are unaffected.

McKinsey has recently delayed hiring back-office staff, said another person familiar with the matter. Other industry executives said many consultancies hope to cut back-office operations to keep costs down.

However, McKinsey stressed that it will “continue to hire customer service professionals” as demand remains strong. The company has added 28,000 staff in the last five years, and now he boasts a global workforce of 45,000, just over half of them in ‘customer-facing’ roles.

McKinsey, along with rivals Bain and BCG, announced the biggest pay increases to new hires in more than 20 years last year. A surge in demand for consulting services and a tight labor market forced them to compete for employees.

According to a person close to McKinsey, the company, which made a record $15 billion in revenue in 2021, will surpass that figure in 2022, though the exact figure was not disclosed.

News of McKinsey cuts looming less than a week from accounting group KPMG announced The company had cut nearly 2% of its U.S. staff (about 700) following a sharp slowdown in its consulting business.

KPMG, the first of the big four accounting firms to formally announce job cuts, has suffered a collapse in M&A activity that has hit its deal advisory business and reduced demand for IT and strategic consulting. was

https://www.ft.com/content/946d816b-7b67-4f39-94a9-41dd5cc45daa McKinsey to cut up to 2,000 jobs in back office restructuring

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