What’s going on at McKinsey?

McKinsey & Company has seen its global workforce shrink by more than 10% over the past 18 months – from over 45,000 at the end of 2023 to around 40,000 in mid-2025 – according to reporting by the Financial Times.

• The consultancy described the cuts as “one of the largest headcount reductions” in its nearly 100-year history.
• The firm attributes the decrease not to mass layoffs, but to a mix of natural attrition and tightened performance reviews.
• A statement to People Matters clarified: “These changes… were not the result of ‘layoffs,’ but rather our traditional performance management process working as it always has.”

Behind the cuts

The contraction follows a years-long expansion strategy that boosted McKinsey’s headcount dramatically.

• Between 2018 and 2023, McKinsey grew rapidly into digital and implementation services.
• By the end of 2023, staff levels had reached more than 45,000 globally.

However, industry-wide consulting demand has slowed post-pandemic, prompting firms to realign.

• SEE ALSO: Layoffs in Canada: Find out which employers are slashing staff

Who was affected?

In 2023, McKinsey cut 1,400 administrative roles, followed by another 400 data and software engineers. The firm also implemented stricter performance evaluations, which led to further consultant departures. While not classed as layoffs by the company, the impact on the workforce mirrors more formal job cuts at peer firms.

McKinsey’s retrenchment comes amid...

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