McKinsey slashes workforce by over 10%

McKinsey & Company cut its workforce by over 10% in the past 18 months, reducing the number of employees from 45,100 at the end of 2023 to approximately 40,000.

It is the largest drop in headcount in the firm’s history.

The firm claims that the reduction in staff is due to normal attrition and performance reviews.

In early 2024, ~3,000 staff received “concerns” ratings and faced potential exits. Some accepted payouts to leave early.

According to experts, the increased use of AI can be blamed for the reduction in headcount.

McKinsey also recently paid $1.6 billion to settle legal claims tied to its consulting services to opioid manufacturers that helped fuel the US addiction crisis. A former partner also received jail time for deleting related emails.

Despite these challenges, McKinsey reported $16 billion in revenue in 2023.

The firm continues to hire and promises strong growth and development opportunities for new talent.