The consulting company McKinsey got rid of 2,000 workers

Slowing demand and predictions of an imminent recession are taking their toll on the labor market. The string of layoffs has been going on for several months. Companies from finance to technology and retail are downsizing, affecting thousands of workers. Now it’s your turn American consulting company McKinsey, specialized in personnel restructuring processes, which has just announced its elimination 2,000 jobs out of a total of 45,000 employees that it has, according to the Bloomberg agency, one of the largest reductions in the history of this consulting giant.

The plan that the company undertakes, the so-called Project Magnolia, is restructuring the organization of its teams, so layoffs could affect professionals who are not directly connected to clients. Sources familiar with the operation stated that layoff program It will take effect over the next few weeks.

“We’re redesigning the way our non-client teams work for the first time in more than a decade, so these groups can effectively support and grow our business,” DJ Carella, a company representative, said in a statement. electronic mail. Carella noted that the company still employs professionals who work directly with clients.

Company registered a record 15,000 million dollars (14,102 million euros) in revenue in 2021. and surpassed that number in 2022, company sources said. This increase in income coincided with a significant increase in the workforce that they now decided to get rid of.

McKinsey’s move comes two years after Bob Sternfels took over as managing partner, winning the support of 650 senior partners to replace his predecessor, kevin sneader. The change in management was the culmination of a tumultuous period for the company, which has drawn criticism for its role in advising the maker of the painkiller OxyContin and faced further criticism over alleged business ties to other companies.

McKinsey consultants popularized the term “ war for talent ” in the late ’90s, a catchphrase that has come back into vogue in recent years as the post-pandemic boom has led to a frenetic period of hiring and workforce expansion across industries. With that growth now beginning to wane, companies are scrambling to preserve profits and are resorting to job cuts on a scale not seen in more than a decade.