Global consulting giant McKinsey & Company is considering a significant round of layoffs as it looks to address years of stagnant earnings.
According to a Bloomberg report citing anonymous sources, the firm has discussed cutting around 10 per cent of its workforce in non-client-facing roles.
If implemented, the move could result in several thousand job losses across support and back-office functions over the next 18 to 24 months.
The discussions come as McKinsey attempts to reverse nearly five years of flat earnings growth, despite a sharp expansion in its global headcount.
McKinsey’s workforce has grown rapidly over the past decade, increasing from about 17,000 employees in 2012 to roughly 40,000 today.
This expansion, combined with changing market conditions, has reportedly put pressure on the firm’s cost structure.
A spokesperson for McKinsey said that artificial intelligence is transforming the firm’s business, hinting that automation and new technologies may be reducing the need for certain support roles. However, the company has not officially confirmed the scale or timeline of the proposed cuts.
The potential layoffs mirror the kind of cost-cutting and efficiency measures McKinsey often advises its own clients to undertake, underscoring how even top-tier consulting firms are being forced to adapt to slowing growth and rapid technological change.