Consulting giant McKinsey to shed 2,000 jobs: Report

SAN FRANCISCO — Global consulting giant McKinsey plans to let go 2,000 of its employees, Bloomberg News reported on Tuesday (Feb 21).

The round of layoffs would be one of the company's biggest ever, according to Bloomberg, which said the firm had increased its headcount from 28,000 to 45,000 over the past five years. 

Citing anonymous sources, Bloomberg said the number of employees affected could still change, and are expected to primarily target administrative staff who do not interact directly with clients.

McKinsey is seeking to centralise its support services for its consultants in a bid to save money after having recruited heavily in recent years.

Founded almost 100 years ago in Chicago and now operating in more than 130 countries, the consultancy had a record revenue of US$15 billion (S$20 billion) in 2021, and exceeded that figure in 2022, according to a Bloomberg source.

Many large US companies, especially in the tech sector, have rolled out layoffs in recent months, following years of rapid growth fueled by the accelerated digital transition during the pandemic.

The layoffs come two years after McKinsey's approximately 650 senior partners chose Mr Bob Sternfels to replace Mr Kevin Sneader at the helm of the company.

Mr Sneader's short tenure atop McKinsey was marked by US lawsuits accusing the company of having contributed to the nation's deadly opioid crisis through work with pharmaceutical companies, such as OxyContin-maker Purdue Pharma.

McKinsey agreed in February 2021 to pay US$573 million to settle those lawsuits. 

The company did not immediately respond to a request from AFP. AFP