McKinsey and Company is reportedly looking at axing about 2,000 jobs as part of a restructuring and centralisation exercise. That means, over four per cent of the consulting firm’s 44,000-strong workforce may be rendered jobless. This is probably the biggest round of layoffs witnessed by the Company.
As per Bloomberg, it is primarily the employees without any direct connection with the clients who will be asked to leave.
Media reports say that this layoff is part of what the Company calls ‘Project Magnolia’. The actual number of employees may even exceed 2,000 once the plan is executed.
McKinsey and Co. witnessed a rapid growth in terms of revenue and headcount. About two years ago, in 2021, it had made a record $15 billion in revenue. It went beyond this figure last year, that is, 2022.
It was only a month ago that the global management-consulting firm acquired Iguazio, a Tel-Aviv-based artificial intelligence (AI) and machine learning (ML) startup. While an official figure wasn’t revealed, it is believed that the deal was for about $50 million.
This is the first time that McKinsey has acquired a company based in Israel. The firm, at the time had planned to create an AI research and development (R&D) centre around Iguazio, and was set to add the entire team of 70 data and AI experts of Iguazio to its workforce.