McKinsey Plans Workforce Reduction in Support Functions Amid Slower Growth

McKinsey & Co is preparing to reduce its global workforce over the next two years as part of a broader effort to manage costs amid slower revenue growth and changing client demand. The move comes even as the consulting firm marks its 100th year in operation.
According to people familiar with the matter, McKinsey is considering cutting about 10 per cent of roles in non-client-facing functions. The reductions are expected to be implemented gradually over the next 18 to 24 months and could affect several thousand employees worldwide. The planned cuts are focused on support and internal roles, rather than consultants working directly with clients.
The workforce adjustment contrasts with the optimistic tone struck during McKinsey’s centenary celebrations in Chicago in October, where the firm’s leadership expressed confidence in its long-term strategy and future growth. Internally, however, the firm has been reassessing its operating model as technology and artificial intelligence continue to change how professional services are delivered.
McKinsey expanded rapidly over the past decade, with its global headcount growing from about 17,000 employees in 2012 to nearly 45,000 at its peak in 2022. Since then, staffing levels have declined to around 40,000. During the same period, the firm’s annual revenues have largely plateaued at approximately $15–16 billion.
This is not the first round of job cuts at the firm in recent years. In 2023, McKinsey reduced its workforce by around 1,400 employees as part of an internal restructuring exercise. The latest planned reductions indicate continued efforts to align costs with current growth conditions.
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