McKinsey is beginning to eliminate roughly 360 jobs as the consulting giant deals with a slowdown in demand for its services

McKinsey is beginning to eliminate roughly 360 jobs as the consulting giant deals with a slowdown in demand for its services, per Bloomberg.

Hundreds of managers at McKinsey's U.K. office have been given the opportunity to spend nine months of company time finding another job instead of working on client projects.

During this period, McKinsey is not only retaining these employees on payroll but also assisting them in enhancing their employability through career coaching and administrative support, such as updating their resumes. Even senior staff members looking for new opportunities will have access to the company's resources, including IT systems and email accounts, to aid in their job search.

The exact number of eligible workers or how many have taken up the offer is unclear. However, after the nine-month period, these employees, known as "on search" workers, will have to leave their positions at McKinsey, regardless of whether they have secured a new job.

The consulting industry has been experiencing a slowdown, with many firms, including Accenture and PwC, adjusting their workforce. Accenture announced 19,000 job cuts last year after hiring 39,000 people the year before. PwC informed its 25,000 U.K. employees that it needed approximately 600 staff members, mainly in the advisory division, to opt for redundancy or face potential job cuts.

McKinsey's workforce has grown to about 45,000 employees, a 60% increase from the 28,000 it had in 2018. Last year, the company underwent one of its largest restructurings, cutting 1,400 back-office jobs.

Despite these efforts, sources at the firm mentioned that not enough employees have voluntarily left. In response, McKinsey is taking a softer approach to downsizing, in contrast to the abrupt layoffs seen on social media platforms like TikTok.

Even in the U.S., McKinsey is giving underperforming consultants three months to demonstrate improvement before potential termination. According to a McKinsey spokesperson, this approach aligns with the company's core mission to help individuals learn and grow, whether they remain at McKinsey or pursue careers elsewhere. The spokesperson emphasized that these actions are part of McKinsey's ongoing effort to ensure effective performance management and development in a caring and supportive manner.

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