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Management consultants McKinsey & Co., has begun cutting 1,400 jobs in a major restructuring move.
The layoffs will affect the New York-based company’s staff worldwide, according to a report from Bloomberg.
The company with 38,000 employees has a presence in more than 130 countries. The company had only 28,000 employees before 2018 and 17,000 in 2012, reports say.
The layoffs, described as a rare development in the company’s history, are expected to predominantly affect the company’s support staff.
“The painful result of this shift is that we will have to say goodbye to some of our firm functions colleagues, while helping others move into new roles that better align to our firm’s strategy and priorities,” Bob Sternfels, global managing partner, wrote in a note to staff. “Starting now, where local regulations allow, we will begin to notify colleagues who will depart our firm or be asked to change roles.”
A Bloomberg report last month quoting sources in the firm said the firm was planning to eliminate about 2,000 jobs.
McKinsey’s revenue surged to $15 billion in 2021 as companies around the world sought help to improve bottom lines affected by the COVID-19 pandemic. The company’s projections for 2022 were even better, according to sources.
The looming recession in the technology and finance sectors has forced many big players including Google, Microsoft, Amazon, and Verizon to slim down. Some unconfirmed reports said management consultant Accenture Plc was also planning a massive round of layoffs that could affect up to 19,000 roles or about 2.5% of its workforce over 18 months.
Sternfels took over as global managing partner two years ago following a vote by its nearly 650 senior partners ousting his predecessor, Kevin Sneader, the Bloomberg report said.