Wednesday, February 22, 2023

McKinsey will cut 2,000 jobs, according to a report

McKinsey to shed 2,000 jobs: report

 CAPE CANAVERAL: Bloomberg News reported on Tuesday that the global consulting giant McKinsey intends to lay off 2,000 of its employees.

Bloomberg reported that the company had increased its headcount from 28,000 to 45,000 in the past five years, making this round of layoffs one of its largest ever.

Bloomberg stated, citing unidentified sources, that the number of affected employees could still change, and that they are anticipated to primarily target administrative staff who do not interact directly with customers.

In an effort to cut costs after hiring a lot of consultants in recent years, McKinsey wants to consolidate its support services for its consultants.

According to a Bloomberg source, the consultancy, which was established almost 100 years ago in Chicago and is now present in more than 130 nations, had a record revenue of $15 billion in 2021 and exceeded that figure in 2022.

After years of rapid growth fueled by the accelerated digital transition during the pandemic, many large US companies, particularly in the technology sector, have implemented layoffs in recent months.

Two years ago, Bob Sternfels was selected by McKinsey's approximately 650 senior partners to succeed Kevin Sneader as CEO.

During Sneader's brief time at McKinsey, the United States filed lawsuits against the company, claiming that it had collaborated with pharmaceutical companies like Purdue Pharma, which makes OxyContin, to contribute to the nation's deadly opioid crisis.

In February 2021, McKinsey agreed to pay $573 million to settle those lawsuits.

AFP requested an immediate response from the company.

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