According to people familiar with the matter, McKinsey & Co, a global consulting firm, is reportedly planning to cut around 2,000 jobs, as reported by Bloomberg News on Tuesday, Feb 21st. This would mark one of the largest rounds of layoffs for the company. The job cuts are expected to primarily affect support staff who do not have direct client-facing roles within the company. McKinsey & Co is known for providing consulting services to a range of businesses and industries, including advising on cost-saving measures such as staff reductions. The firm has not yet commented on the reported job cuts.
The move is part of Project Magnolia, which aims to restructure how the firm organizes its support teams, focusing on centralizing some roles. The layoffs are expected to affect support staff who do not have direct contact with clients. The company hopes that this move will help preserve the compensation pool of its partners. The report comes after the Financial Times reported last week that KPMG was cutting nearly 2% of its workforce in the United States, making it the first of the world’s four largest accountancy firms to reduce jobs in the country.
“We are redesigning the way our non-client-serving teams operate for the first time in more than a decade so that these teams can effectively support and scale with our firm,” a company spokesperson said in an emailed statement to Reuters, commenting on McKinsey’s plan to cut about 2,000 jobs as part of Project Magnolia.
