REUTERS/CHARLES PLATIAU.
Management consulting firm McKinsey plans to cut about 2,000 jobs.
The company is seeking to restructure its support teams and centralize roles after boosting its workforce from 28,000 to 45,000 over the past five years.
- McKinsey is planning to reduce staff numbers as part of a larger reorganization plan, reports Bloomberg, citing people familiar with the matter.
- The plan, called Project Magnolia, is intended to preserve the compensation pool for the company's partners.
- It comes after McKinsey posted record revenue of $15B in 2021, a figure that the company likely topped last year, according to several media reports.
- A McKinsey representative told Bloomberg that the firm is "redesigning the way our non-client-serving teams operate for the first time in more than a decade, so that these teams can effectively support and scale with our firm.”
- The restructuring plan has yet to be finalized and the number of staff reductions remains subject to change.
- McKinsey ousted its top executive in 2021 after the firm faced criticism for advising the makers of the highly addictive opioid OxyContin.
- Companies in the finance, technology, and retail industries have announced job cuts in recent months as they prepare for an expected economic slowdown in 2023.
