McKinsey rejects layoff claims – attributes headcount drop to performance reviews, not job cuts
McKinsey & Company has issued an official clarification rejecting claims that it has laid off more than 5,000 employees globally over the past 18 months. In a statement shared directly with People Matters, the firm said the recent drop in headcount was not the result of layoffs, but a combination of natural attrition and its standard performance management processes.
The clarification follows reports citing a significant reduction in the consulting giant’s workforce—from around 45,000 at the end of 2023 to approximately 40,000 today. While some headlines characterised this as one of the largest rounds of layoffs in McKinsey’s history, the company has now stated that such claims are inaccurate.
“As has been publicly reported, these changes in overall headcount were not the result of ‘layoffs’, but rather our traditional performance management process working as it always has,” the company said.
Like many major firms, McKinsey expanded rapidly during the pandemic years, responding to high demand for digital transformation, analytics, and restructuring expertise. Between 2018 and 2023, its workforce grew by nearly two-thirds. But as client demand began to stabilise post-pandemic, consulting firms—including McKinsey—have had to rebalance their operations.
In 2023, the firm implemented a number of structural changes, including the elimination of around 1,400 back-office roles and adjustments to its data and software teams. These moves came amid a broader review of performance and business priorities.
However, McKinsey emphasised that these actions did not constitute a formal layoff programme. The firm reaffirmed that it continues to follow long-established processes to manage talent and performance expectations.
Talent strategy remains active
Despite the reduction in headcount, McKinsey maintains a strong hiring pipeline. The firm confirmed it plans to welcome thousands of new consultants this year, as it focuses on strategic growth areas, including generative AI and enterprise transformation.
“Our firm continues to grow, and we’re doing more impactful work, in more ways, than ever,” the company stated.
It also highlighted its continued focus on learning and development as a core part of its employee value proposition.“We provide unrivalled development opportunities for our colleagues, which is why we are widely recognised as one of the best places for talent to learn and develop into leaders.”
Recognised as one of the "Big Three" strategy consulting firms, McKinsey continues to influence major industries and governments globally. Despite recent workforce adjustments, the firm remains committed to its mission of driving sustainable and inclusive growth .