Tech Layoffs 2024: McKinsey — Firm offers staff 9 months’ salary to quit, report claims

Global consulting firm McKinsey & Co. announced plans to eliminate almost 360 jobs globally. This will affect around 3 per cent of its specialist and technically-skilled workforce and will impact employees across various divisions, including design, data engineering, cloud, and software, Bloomberg reported citing people in the know.

“We invest to grow capabilities that match our clients’ priorities and adjust the size of a small number of others as appropriate. As part of this process, some roles will be eliminated within this small number of capabilities,” a spokesperson from McKinsey said in a statement, reveals the report.

At McKinsey, employees in client-facing roles who underperform typically leave after being advised to do so, a situation described as being “counselled to leave.” This suggests that the company does not wish to involve them in client projects and suggests they seek opportunities elsewhere. However, in this instance, employees in good standing are opting to leave on their own accord. Those who opt for the nine months’ pay offer would still be required to leave even if they were unable to secure alternative employment during that time.

Last year, McKinsey underwent an unusual round of layoffs, aiming to cut approximately 1,400 positions, primarily among support staff rather than those in client-facing roles.

Another reports also states that McKinsey has offered to pay hundreds of senior employees if they wish to leave the company and look for other jobs as the company attempts to reduce headcount amid a a sector-wide downturn, a report claimed.

The company has also reportedly told employees that during this period, they will continue to receive their full salary. This could amount to hundreds of thousands of pounds if employees utilise the entire nine-month duration. These managers will also have access to McKinsey’s resources and career coaching services, 

McKinsey previously attempted to reduce its workforce amid a downturn as in 2023, the company announced plans to cut approximately 1,400 jobs, which accounts for around 3% of its workforce, Bloomberg then reported.

In February this year, McKinsey gave poor performance ratings to 3,000 employees who were then given around three months to improve their performance or they could leave the company, the report added.