McKinsey to slash thousands of jobs amid consulting slowdown: Bloomberg

The news: McKinsey leaders have discussed the need to cut around 10% of its headcount across the firm’s business, according to sources cited by Bloomberg.

The numbers: Sources said the reductions could amount to a few thousand job cuts that McKinsey would stagger over the next 18 to 24 months, but that it is too early to gauge the net impact on headcount. Since 2022, the firm’s employee count has slid from a high of 45,000 to around 40,000, Bloomberg reported.

The context: “As our firm marks its 100th year, we’re operating in a moment shaped by rapid advances in AI that are transforming business and society,” a McKinsey spokesperson told Bloomberg. “Just as we’re partnering with clients to strengthen their organisations, we’re on our own journey to improve the effectiveness and efficiency of our support functions.”

The company plans to continue hiring consultants while cutting back on support functions, the sources said.