McKinsey’s staff numbers have dropped by more than 10% in the last 18 months

McKinsey’s head count has fallen by more than 10% in the last eighteen months, marking a sharp reversal of its pandemic-era hiring spree.

The global consulting firm had 45,100 employees at the end of 2023, when it last publicly released figures. It now has roughly 40,000 employees, according to a person with knowledge of McKinsey’s staffing.

The news was first reported by the Financial Times.

During the pandemic, McKinsey and other leading consultancies hired aggressively to meet increased demand.

In 2020, McKinsey had roughly 34,000 employees, according to its annual social responsibility report, meaning it added about 9,000 staff in the following three years.

The decrease in employee numbers is related to the consulting firm’s traditional performance management process and is not the result of layoffs, the person familiar with McKinsey’s staffing said.

In February 2024, McKinsey gave some 3,000 staffers poor performance ratings, known internally as “concerns.” Employees who receive these ratings are typically told they have about three months to shape up or they’ll be “counseled to leave” the firm.

Some of the staff were also offered payouts if they decided to leave ahead of their performance review.

A former McKinsey consultant previously told BI that he lost his job in 2024 amid a clear overhiring issue. Another said the firm pushed out employees with contrived performance ratings.

The consultancy has paid roughly $1.6 billion over recent years to settle legal claims that its work advising US opioid manufacturers helped fuel the addiction crisis.

Last week, a former McKinsey senior partner was sentenced to six months in prison for obstructing justice by deleting emails relating to the project.

McKinsey made $16 billion in revenue in 2023. Its 2024 report, published earlier in May, did not include an annual revenue figure.

A McKinsey spokesperson told BI that generative AI is enabling new levels of productivity for its employees and that McKinsey continues to carry out more impactful work than ever.

“We also provide unrivaled development opportunities for our colleagues, which is why we are widely recognized as one of the best places for talent to learn and develop into leaders. We continue to recruit robustly and will welcome thousands of new consultants to our Firm this year,” the spokesperson told Business Insider.

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