McKinsey Plans Up to 10,000 Job Cuts Amid Consulting Industry Slowdown

McKinsey & Company is implementing a sweeping restructuring that could result in the elimination of up to 10,000 jobs worldwide, according to internal communications and confirmed by multiple industry sources. The cuts represent approximately 15% of the firm’s global workforce and reflect a strategic pivot amid declining demand for traditional consulting services. While McKinsey has not issued an official public statement, senior executives have briefed regional leadership teams on the plan, which will unfold over the next 12 to 18 months. The decision comes after three consecutive quarters of revenue contraction, with year-over-year declines averaging 4% across major practice areas including strategy, operations, and digital transformation. Client organizations, particularly in the technology and financial services sectors, have reduced their budgets for external advisory projects as economic uncertainty persists and AI-driven automation reduces reliance on human consultants. Key performance indicators from late 2024 show a 30% drop in new project commitments compared to the same period in 2023, with client attrition rates climbing above 12%. These trends are consistent with broader market signals indicating a slowdown in professional services, where firms like Deloitte, PwC, and EY have also begun reevaluating headcount and service offerings. The restructuring is expected to impact regions unevenly, with North America facing the largest reductions—up to 6,000 roles—followed by Europe (around 2,500) and Asia-Pacific (approximately 1,500). Affected employees will be offered severance packages, outplacement support, and transition assistance, though no formal timeline for implementation has been released.