New York, May 28: McKinsey & Company, a US-based global management consulting firm, has laid off 10% of its employees in the past 18 months. The McKinsey layoffs affected more than 5,000 people worldwide during this time. The latest round of job cuts was implemented amid the industry-wide slowdown and legal troubles, according to reports. The company that increased its headcounts during the COVID-19 pandemic by adding more employees has started cutting jobs.

The McKinsey layoffs were implemented by the company to reduce its excessive workforce. The 10% job cuts have reduced the total headcount from around 45,000 to 40,000. Reports said that the global management consulting giant expanded its workforce by two-thirds for project implementation and digital services during five years until 2023. IBM Layoffs 2025: Tech Giant Lays Off Around 8,000 Employees, Shifts Focus to AI and Automation Integration.

According to reports, the global consulting industry has been facing slow revenue growth after booming during the pandemic era. The industry's growth became unstable, leading to a decline in demand. McKinsey started expanding its workforce to focus on digital transformation, project delivery, and data analytics. However, the unexpected decline in demand led the company to rethink its strategy. 

McKinsey started restructuring its business in 2023 and laid off 1,400 employees who held jobs in back-office operations. In the same year, the company laid off 400 more data and software engineering employees. In 2024, McKinsey & Company announced layoffs amid downturns in the sector and offered employees nine months of salary to search for jobs elsewhere.

Besides the sector facing slow growth, the consulting giant had been fighting a legal battle as well. McKinsey & Company faced USD 1.6 billion in legal settlement related to its past work with US opioid manufacturers. These factors affected the company, and its operations were reset. The consulting sector saw a rise during the COVID-19 pandemic due to high demand leading to massive hiring. Volvo Layoffs: Swedish Car Company Announces Massive Job Cuts; To Slash 3,000 Jobs as Part of Major Cost-Cutting Initiative.

However, today, the sector has touched a historic low, and firms are considering managing the staff level by cutting some jobs. McKinsey's rival company, BCC (Boston Consulting Group), reported a 10% growth in revenue at USD 13.5 billion and increased its headcount to 33,000. 

(The above story first appeared on LatestLY on May 28, 2025 10:45 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).