Global consulting giant McKinsey & Company has reduced its workforce by approximately 10%, bringing its employee count down from over 45,000 at the end of 2023 to around 40,000. The job cuts, spread across the past 18 months, mark the largest downsizing exercise in the firm’s history.
The move comes as McKinsey grapples with slower revenue growth following the pandemic-era boom. During the COVID-19 period, the company rapidly expanded its headcount—growing by nearly two-thirds—to meet heightened demand. However, as that demand waned and voluntary attrition dropped to historic lows, sustaining the larger workforce became untenable.
In response, McKinsey launched a comprehensive restructuring in 2023, which included the elimination of 1,400 back-office roles. Additionally, around 400 positions involving data specialists and software engineers were cut. The firm also tightened its performance evaluation process, leading to the departure of underperforming employees.
Adding further financial strain, McKinsey paid over $1 billion to settle a lawsuit related to its advisory role in the U.S. opioid crisis. In April 2024, McKinsey UK offered senior staff voluntary exit packages, including up to nine months’ pay and career-coaching services, as part of a broader cost-control initiative.
With competitors beginning to post stronger financial results, McKinsey is focused on regaining profitability and operational efficiency. The firm’s latest actions reflect its commitment to adapting in a shifting consulting landscape and positioning itself for long-term stability.
