McKinsey & Co. is preparing to trim its workforce as the consulting firm confronts slower growth, even as its leadership struck an upbeat tone at a centennial gathering in Chicago late last year, Bloomberg News reported Monday, citing people familiar with internal talks.
McKinsey has told managers in non-client-facing functions to plan for roughly a 10% reduction in headcount, potentially affecting several thousand roles over the next 18 to 24 months. The cuts would primarily target support functions, while hiring of frontline consultants is expected to continue.
The move reflects a broader reset after years of rapid expansion. McKinsey’s employee base surged from about 17,000 in 2012 to a peak near 45,000 a decade later, before easing to roughly 40,000. Revenue has remained largely flat at around $15 billion to $16 billion over the past five years.
A company spokesperson said to Bloomberg News that McKinsey is reassessing its internal operations as artificial intelligence reshapes business models, echoing advice the firm routinely gives clients on improving efficiency. The ultimate effect on staffing remains unclear.
The planned reductions come as consulting demand softens globally. Rivals including EY and PwC have also cut jobs, while McKinsey recently eliminated about 200 technology roles as automation expands. Pressure has also mounted from reduced government consulting spending in the United States, a shift toward domestic firms in China, and lower fees from Saudi Arabia, once one of McKinsey’s largest markets.
Despite these challenges and lingering reputational issues from past controversies, global managing partner Bob Sternfels has emphasized that the firm is positioned to move beyond a period of weak growth and regain momentum as it enters its second century.