McKinsey & Company, a global management consulting firm based in New York, is planning to cut 2000 jobs in one of its biggest layoffs, Bloomberg News reported on Tuesday, citing people with knowledge of the matter.
The report added that the layoff is expected to focus on support staff who do not have direct contact with clients of the company. The layoff comes days after giants like DocuSign, KPMG, Twilio, Disney and Yahoo announced that they are letting people go amid recession fears.
McKinsey’s layoffs could affect more than 4% of the company’s employees. There are about 44,000 people on its payroll, as per PitchBook. The company led by Bob Sternfels is yet to make any official statement.
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What is Project Magnolia?
The layoffs are a part of Project Magnolia, the Bloomberg report states. The firm hopes the project will help preserve the compensation pool of its partners. The consulting group might also restructure to centralize some of the roles.
The final decision is expected to be made in the coming weeks. The final number of roles to be eliminated could still change, one of the people close to the layoffs said.
“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,” DJ Carella, a company representative, said in an emailed statement, adding that the firm is still hiring professionals who deal directly with clients.
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In recent months, tech giants including Amazon.com Inc. and Microsoft Corp. announced plans for deep cuts, and Goldman Sachs Group Inc., Morgan Stanley and other top banks eliminated thousands of jobs.