McKinsey & Company is preparing to cut thousands of jobs as the global consulting industry grapples with a prolonged slowdown in demand, according to people familiar with the firm’s internal discussions. The planned reductions, expected to unfold over the next 18 to 24 months, would mark one of the most significant restructurings in the firm’s nearly century-long history and reflect broader changes reshaping professional services.
The job cuts are expected to focus primarily on non-client-facing roles, including administrative, research, and support functions, rather than on frontline consultants who work directly with clients. Senior leaders have discussed trimming roughly 10% of certain support teams, a move that could translate into several thousand positions globally if fully implemented. McKinsey employs tens of thousands of people across more than 60 countries.
The discussions come as the consulting giant confronts slowing revenue growth after years of rapid expansion. Like many of its peers, McKinsey benefited from a surge in demand during and immediately after the pandemic, when companies sought advice on crisis management, supply-chain disruptions, digital transformation, and organizational restructuring. That boom has since cooled as corporate clients rein in spending amid economic uncertainty, higher interest rates, and tighter budgets.
Executives at McKinsey have acknowledged internally that the firm expanded aggressively during the high-growth years and now needs to rebalance its cost structure to align with more modest demand. Headcount swelled significantly during the past decade, particularly in internal services designed to support consultants and partners. With utilization rates under pressure, leadership has been reassessing which roles are essential to delivering value to clients.
Artificial intelligence has also emerged as a key factor behind the planned cuts. Advances in generative AI and data analytics are reducing the need for large teams dedicated to tasks such as research, data cleaning, presentation development, and internal knowledge management. McKinsey itself has been a vocal proponent of AI adoption, advising clients on how to deploy the technology while simultaneously integrating AI tools into its own operations.
As automation becomes more capable, the firm believes some support functions can be streamlined or redesigned. Internal documents and discussions have emphasized efficiency gains from technology, with fewer people needed to perform work that can now be completed faster and at lower cost using AI-driven tools. While McKinsey plans to continue investing in technology and specialized expertise, that shift is expected to come at the expense of certain traditional roles.
The potential layoffs underscore the challenges facing the broader consulting industry. After years of near-continuous growth, major firms are confronting a more cautious client environment. Companies are delaying large transformation projects, reducing discretionary spending on strategy and advisory services, and bringing more capabilities in-house. As a result, consulting firms have been forced to slow hiring, reduce campus recruitment, and, in some cases, implement layoffs.
Rival firms have taken similar steps over the past two years, including workforce reductions, hiring freezes, and cuts to bonuses. The pressure has been particularly acute in strategy and management consulting, where fees are high and projects are often among the first expenses to be trimmed during downturns. While demand for consulting has not collapsed, it has become more uneven and price-sensitive.
At McKinsey, leadership has sought to balance cost discipline with maintaining the firm’s long-term competitiveness. Managing partners have stressed internally that the firm will continue to hire selectively in growth areas such as technology, digital transformation, sustainability, and advanced analytics. Client-facing consulting roles are expected to be largely protected, reflecting the firm’s belief that its core advisory capabilities remain strong.
Nevertheless, the prospect of thousands of job cuts has created unease among employees, particularly those in internal and support roles. Some staff fear that the changes could alter McKinsey’s culture, which has traditionally emphasized extensive internal resources to support consultants and maintain high standards of quality and consistency. Others see the restructuring as an inevitable response to economic reality and technological change.
The timing of the discussions is notable, coming as McKinsey marks its 100th anniversary. The milestone has prompted reflection within the firm about how it must evolve to remain relevant in a rapidly changing business landscape. Senior leaders have framed the potential cuts as part of a broader effort to modernize the organization, making it leaner, more agile, and better suited to the next phase of growth.
If implemented, the reductions are expected to be gradual rather than abrupt, with changes rolled out over several years. McKinsey has a history of managing workforce adjustments through attrition, redeployment, and performance management, and executives are likely to use similar mechanisms to limit the disruption. Still, the scale of the proposed cuts suggests a significant shift in how the firm operates.
For the consulting industry as a whole, McKinsey’s plans may signal a new normal. The era of rapid headcount growth fueled by relentless client demand appears to be over, at least for now. In its place is a more cautious environment in which firms must balance investment in talent and technology with pressure to control costs.
As companies reassess how and when they use consultants, firms like McKinsey are being forced to adapt. The planned job cuts highlight the extent to which even the most prestigious names in consulting are not immune to economic cycles and technological disruption. How successfully McKinsey navigates this transition may offer clues about the future shape of the industry itself.
