McKinsey & Company, a consulting firm, plans to restructure by cutting around 2,000 jobs. This is one of the company’s biggest layoffs ever. According to Bloomberg, the current round of layoffs will affect its non-client-facing support staff, as reported by Bloomberg.
The layoffs are a part of Project Magnolia, which the firm hopes will help preserve the compensation pool of its partners, according to the report.
The company is also looking to restructure how it organizes its support team to centralize some roles.
The job cuts are likely to be finalized in the upcoming weeks.
According to reports, McKinsey employed over 45,000 people, up from around 28,000 five years ago and 17,000 in 2012.
The firm posted a record $15 billion in revenue in 2021 and surpassed that figure in 2022.
The move comes after Bob Sternfels took the global managing partner role two years ago, following a vote by its nearly 650 senior partners to oust his predecessor, Kevin Sneader.
Several big companies, including the tech giants Amazon and Microsoft, announced job cuts earlier. In addition, known banks like Morgan Stanley, Goldman Sachs, and others have been laying off thousands of employees.