As McKinsey & Co. celebrates 100 years, the firm is preparing to reduce thousands of jobs in response to slower growth. Leadership has told managers in non-client-facing departments that roughly 10 percent of support staff could be cut over the next 18 to 24 months. These roles are mainly behind-the-scenes positions, not client-facing consultants. People familiar with the matter requested anonymity because the details are private.
McKinsey expanded rapidly over the past decade, growing from about 17,000 employees in 2012 to around 45,000 in 2022. Since then, the workforce has fallen to roughly 40,000. Revenue has remained largely flat at around $15 to $16 billion annually. The slowdown comes as clients have become more cost-conscious, reducing demand for traditional consulting services.
Even as support roles are reduced, McKinsey plans to continue hiring consultants who work directly with clients. These positions are harder to automate and remain a priority for the firm.
Focus on Efficiency and Technology
McKinsey’s leadership has emphasized the importance of making internal operations more efficient and cost-effective. The firm is carefully reviewing its support departments to identify areas where staff reductions or automation can improve productivity. A McKinsey spokesman said that the firm’s approach mirrors the advice it provides to clients: just as it helps other organizations optimize their operations, it is actively working to streamline its own internal processes.
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As part of this effort, McKinsey recently eliminated about 200 global technology jobs. The firm is increasingly using artificial intelligence and advanced software tools to handle internal tasks, including data management, scheduling, reporting, and other repetitive activities. Leadership has stressed that client-facing roles, which involve direct advisory work with companies and governments, remain a priority and are not the focus of automation.
Even amid these internal changes, McKinsey continues to invest in hiring staff who work directly with clients. These roles are crucial for providing strategic advice, developing solutions, and supporting major projects around the world. By combining a leaner support structure with continued growth in client-facing teams, the firm aims to maintain its global influence while adapting to a changing business environment and the increasing role of technology in day-to-day operations.
Reasons Behind the Cuts
Several factors are driving McKinsey’s decision to reduce staff. Economic pressures, such as slower global growth and reduced spending on consulting, have weakened demand for traditional services. Technological advances like AI have transformed how internal tasks are performed, making some positions redundant.
The consulting industry as a whole is facing similar challenges. Firms such as EY, PwC, and Accenture have also been reducing staff or reshaping roles to match evolving client needs. Cost pressures, automation, and market competition are pushing companies to focus on efficiency.
McKinsey’s move follows a recent reduction of about 200 tech jobs, reflecting the growing role of AI in streamlining internal operations. The firm plans to continue hiring consultants who work with clients even as support roles are cut.
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Leadership Messaging
At a centennial event in Chicago, McKinsey’s global managing partner, Bob Sternfels, delivered an optimistic message to partners. High-profile guests including Rio Tinto Chairman Dominic Barton, Visa Inc. chief Ryan McInerney, former US Secretary of State Condoleezza Rice, and Oprah Winfrey attended the event. Sternfels highlighted the firm’s history and influence and said the company was ready to escape years of flat growth.
Behind the scenes, however, leadership has communicated the need to adapt to a slower growth environment and improve efficiency. A McKinsey spokesman said it is still early to know the net impact on headcount. The company emphasized that planned cuts target support functions, while client-facing roles continue to be a priority.
Even with reductions in some areas, the firm remains committed to hiring more consultants who work directly with clients. This approach ensures McKinsey can maintain its influence in the global consulting market while responding to current economic and technological changes.
