McKinsey & Co is seemingly to lay off more than 2,000 employees of its total workforce. The giant cut is designed to be a part of the new Project Magnolia.
Project Magnolia would be headed and carried out by the management team of the company. The project is expected to save the compensation pool for exclusively the partners of the company. The partners are still anonymous upon their request to stay so it, as has the status of nonpublic information.
McKinsey and Co have faced rapid growth in the workforce in the past ten years and now has decided to reduce the number of employees in an attempt to restructure the organization of the support teams. The restructuring would help the support teams to centralize certain key roles.
The final decisions of Project Magnolia would be made in the following weeks and changes could be expected in 2,000 an approximate number that is revealed now to be let go from the company
Bob Sternfels is the current global managing partner of McKinsey. He was preceded by Kevin Sneader who did not win the senior partner vote to continue in the position.
DJ Carella, a representative of the company, in a statement issued through an email, said that the company was undergoing a redesign in the way the nonclient serving teams operate for the first time ever in more than a decade.
It was to enable the teams to support and scale the firm effectively. Carella had added that the firm was still conducting recruitments to hire professionals who can directly deal with clients.
Another representative from the company stated the company now has an overall workforce of 45,000. Before five years, the total number of people who served the company was 28,000, in 2018. Six years before 2018, in 2012 the workforce was 17,000.
In 2021 the company made a record huge revenue of 15 billion US Dollars. The next year witnessed the record being broken with a higher amount.
The support staff who do not have direct contact with the clients would be the target of the massive layoff.
The lay would make around 4 percent of the employees unemployed.
The post-pandemic period is witnessing many of the big tech companies letting go of their employees in an attempt to reduce the workforce and in cost-cutting measures.
DJ Carella, a representative of the company, in a statement issued through an email, said that the company was undergoing a redesign in the way the nonclient serving teams operate for the first time ever in more than a decade.
It was to enable the teams to support and scale the firm effectively. Carella had added that the firm was still conducting recruitments to hire professionals who can directly deal with clients.
Also Read: Microsoft Is About To Lay Off Thousands From Today
Who Else Announced A Lay-Off Other Than McKinsey & Co?
Other companies that announced deep cuts alone in the month of February are Yahoo, Twilio, DocuSign, Disney, and KPMG.
Yahoo, the American tech head, is about to cut off more than half of the workforce of Yahoo For Business, its business solutions platform. The process that would have an effect on more than 1,600 employees has begun and has impacted about 1,000 people already. Yahoo quoted that the decision was made to simplify and strengthen the now nonprofitable advertising business of the company.
Twilio, the programmable communication tool provider has a total workforce of about 9,000 employees. The company would let go of more than 1,500 employees. Previously the company has laid off about 11 percent of its workforce. The CEO of the company responded that Twilio is undergoing a major realignment plan.
DocuSign, the pioneer of e-signature technology, has plans to slash 10 percent of its staff. This is a second slash as another 9 percent of the staff were removed three months ago. The second slash would have an impact nearly on 740 of the 7,400 workers.
Also Read: Recession: Remote Workers To Be First Victims Of Layoffs?
Disney, the entertainment house, announced a cut-off that would affect only 3.2 percent of its staff. Although given the total number of employees at Disney as 220,000 the decision would be made for 7,000 employees. Disney CEO said that the company is aiming at saving 5.5 billion US Dollars and the cost-cutting measure implemented was the layoff.
KPMG (Klynveld Peat Marwick Goerdeler), the financial and business advisor, will remove 2 percent from the current workforce. The layoff is a measure to combat the most probable recession.
FedEx, the global delivery transport company, will make a cut of 10 percent of employees in its director and officer team. The company has earlier announced an indefinite period of freezing for new hiring.
Spotify, the music streaming giant, announced a 6 percent slash of its workforce. The decision would affect the lives of about 600 of the total employees.
Google, the global leader, and its parent company Alphabet is on a plan to lay off more than 12,000 jobs globally. Sundar Pichai the CEO of the company said that the layoff decision was a tough one although it was the high need of the moment as the company proceeds to fully make use of the coming opportunities.
