McKinsey Layoffs 2023: What to Know About the Latest McKinsey Consulting Job Cuts

consulting giant McKinsey plans to lay off around 2,000 employees in one of the largest rounds of downsizing in the company’s history. What do you need to know about the layoffs at McKinsey?

Well loud Bloomberg News, the company is attempting a targeted round of layoffs among support staff who don’t communicate directly with customers. McKinsey is known for advising companies on a variety of dimensions, including, ironically, layoffs.

“For the first time in more than a decade, we are redesigning the way our non-customer facing teams work so that those teams can effectively support and scale with our business,” said a company spokesman Reuters in an email.

The job cuts come as part of “Project Magnolia,” which McKinsey claims will help the company preserve the partners’ compensation pool.

The McKinsey layoff news is just the latest report on layoffs in the consulting world. Last week the financial times reported about KPMGwhich was in the process of shedding about 2% of its US workforce, was the first of the Big Four accounting firms to cut jobs domestically.

So what else do you need to know about McKinsey’s recent job cuts?

McKinsey layoffs contribute to job cuts trend

McKinsey joins an ever-growing list of technology and growth companies making layoffs recently. In fact, giants like Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT) And Meta (NASDAQ:META) have implemented large-scale job cuts over the past year, likely in response to a rapidly tightening monetary policy environment. With the central bank raising interest rates eight times over the past year, heavily leveraged tech and growth companies have shed jobs to preserve margins. Meta, in particular, made headlines in November after laying off 11,000 employees, about 13% of its workforce.

Despite this, the US has been beating expectations for job growth month after month. In January, the US economy added 517,000 jobs, nearly triple market estimates. While certain industries have seen more layoffs, the post-pandemic hiring frenzy doesn’t seem to have entirely slowed down more broadly.

It remains to be seen whether there will be further layoffs in the consulting sector after the recent job cuts at McKinsey.

At the time of publication, Shrey Dua held no position (neither directly nor indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publicity guidelines.