McKinsey sheds 10% of staff in two-year profitability drive

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McKinsci has cut more than 10 percent of its employees in the last 18 months, while the consulting services were high in demand during the Coronavirus epidemic and the firm has increased its strength by about two-thirds.

According to people known in this regard, there are about 5 employees of the consulting agency, compared to more than 5,7 in the end of 2021, when it recently released an image.

Job cuts in the largest 100 -year -old history of McKinsi reflect the intense recession in revenue growth throughout the consulting market. This group has been hit with $ 1.6bn in legal populations from work for us OPWED manufacturersThe

In addition to throwing 5 back-office personnel in the reconstruction, which started in 2021, McKincies dismissed 5 experts in cases like data and software engineering last year. It Its weakened performance has increased pressure on consultants According to people known about the matter, last year to leave through an abnormally strong mid-year performance review program.

McKinsAbout two-thirds increased in five years, as it was implemented by the larger scale project for all consulting agencies during the epidemic and the business expanded its main advisory services.

Ever since the emergence of consultation has ended, voluntarily has the number of staff leaving professional service groups Dula to record lowThe When the roaring job market and epidemic impact lead to the release of a more rewarding or better pay, following “great resignation”, following “great resignation”, the decrease level of the attraction surprised the atrison.

Bob SteronfelsMcKinsi Global Managing Partner, last year, told colleagues that the company intended to be “imbalanced” by the end of 2021.

McKinsi’s shrink headcount remains in contrast to his small rivals BCGThe last month, the worldwide revenue increased by 10 percent to the $ 13.5 billion for 2024, saying that its workforce increased by about a thousand people to 33,000. Its headcount stood at 30,000 two years ago.

McKinsi’s workforce was “45,000 plus” at the end of 2022 and at the end of 2023, according to its annual report. The report of 2024 published this month did not include the number of staff.

The report also not included in the 2024 income, not the same as the previous years. McKincy’s revenue was $ 16 billion in 2023.

McKinsi said: “Our farm is growing further and we are doing more effective work than ever.

In addition to the slow revenue growth, the consulting industry is fighting the introduction of generator artificial intelligence, which is ready to automate the work done by junior employees while increasing the productivity of others.

Jeante Trankel, II’s Global Chief Executive, said at the annual conference of the Milken Institute this month that his firm would not cut the job in response to AI but could do less with less. “I want to think that we can double the size we have today with the power we have,” he said.

McKinsi said: “Generator AI enables new levels of productivity for our teams.”