Under a plan dubbed ‘Project Magnolia’, McKinsey’s management team is hoping the move will help preserve the compensation pool for its partners
Global management consulting firm McKinsey & Co is planning to eliminate about 2,000 jobs, according to a Bloomberg report citing people with knowledge of the matter. The report said the move is expected to focus on support staff who do not have direct contact with clients of the company.
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Under a plan dubbed ‘Project Magnolia’, the management team is hoping the move will help preserve the compensation pool for its partners, according to the report.
The layoff plan is expected to be finalised in the coming weeks, and the final number of roles to be eliminated from its 45,000 workforce could still change, the report said quoting one of the sources. That headcount is up from 28,000 just five years ago and 17,000 in 2012.
“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,” a company spokesperson said in an emailed statement to Reuters.
Last week, the Financial Times reported that KPMG was cutting about 2 per cent of its workforce in the US, a move which made it the first of the world’s four biggest accountancy firms to slash jobs in the country.
