Consultancy firms are tasked with conducting research and delivering insights that allow businesses to gauge the market and frame strategies. But the layoffs triggered by recession and high costs, are overflowing into every major sector after starting from the tech industry. Now one of the world's major management consulting firms, McKinsey has reportedly slashed its workforce by 2,000.
Hit by a bloated workforce
After increasing its staff strength from 28,000 to 45,000 in five years, the firm is set to start its biggest layoffs ever. As thousands from the administrative staff face unemployment, the number could go higher. Turns out that just like most tech firms, research firm McKinsey also wasn't able to anticipate future demand and hired too many people.
Cost cutting despite high revenues
The century-old firm active in more than 130 countries is trying to cut costs even after exceeding the $15 billion mark for revenues in 2022. But in 2021, McKinsey had to pay $573 million to settle a lawsuit over its involvement in the US opioic crisis, through its work for a pharma company.
McKinsey had recently emerged as the biggest recruiter for MBAs from the Indian Institute of Management in Ahmedabad. The layoffs are going to hit employees who aren't directly interacting with the firm's clients.
(To receive our E-paper on WhatsApp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)
