Why is McKinsey cutting thousands of jobs during its 100th anniversary year? [Los Angeles Times (CA)]
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Source: Los Angeles Times
The firm's revenue growth has flatlined over five years despite expanding from 17,000 to 45,000 employees, prompting a reset toward leaner operations. Cost-conscious clients, reduced government spending, and geopolitical headwinds in China and Saudi Arabia are pressuring the industry's flagship firm. As McKinsey & Co. partners gathered in the consulting giant's birthplace in late October, Bob Sternfels delivered a rallying cry. “We will kick some ass as we start our second century,” the firm's top executive told the thousands of attendees. But away from the 100-year festivities in Chicago, McKinsey bosses have been conveying a more pragmatic message: It's time to get leaner. The firm's leadership has discussed with managers in non-client-facing departments the need to cut about 10% of headcount across their business, according to people with knowledge of the matter. That could amount to a few thousand job cuts that McKinsey would stagger over the next 18 to 24 months, the peo
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