McKinsey is so eager to trim staff that it’s offering some employees 9 months’ pay to go and do something else
Like many industries right now, the consulting market is in the midst of a downturn, and it's leaving employers forced to cut staff. The Big Four accounting firms have already put thousands of jobs on the chopping block, with their consulting divisions disproportionately hit.
But instead of trimming back less essential employees, McKinsey is attempting to slim the company down “in a caring and supportive way”—by paying its workers to quit.
Hundreds of managers at the consulting giant’s U.K. office have been offered the chance to spend nine months of company time to find another job, rather than working on client projects.
Not only is McKinsey keeping its workers on payroll while they hunt for a new employer, but the firm is also helping to make them more employable with career coaching and admin support, such as updating their résumés.
Senior staffers with one foot out of the door will even be able to continue using the company’s resources, such as its IT systems and email accounts, to help them bag a new gig.
It’s unclear exactly how many workers are eligible for the offer or how many have already taken it up.
Either way, after nine months have passed, “on search” workers will have to give up their coveted McKinsey roles—whether they’ve scored another job elsewhere or not.
A kinder alternative to layoffs
Firms across the consulting space have been working to navigate an ongoing slowdown in the industry, after a hiring spree during the pandemic.
For instance, Accenture announced it was going to slash 19,000 jobs last year, after having hired 39,000 people in the year prior.
Meanwhile, PwC told its 25,000-strong U.K. workforce that it needs around 600 staffers (mainly in the advisory division) to opt for redundancy—or the company would take matters into its own hands with job cuts.
McKinsey’s headcount, for its part, has swelled to about 45,000 employees, up 60% from the 28,000 it had in 2018.
So last year the company cut 1,400 back-office jobs, in one of the largest restructurings in the firm’s 98-year history.
But according to sources at the firm, per the Times, not enough workers have quit since.
This time, its soft-landing strategy for downsizing is in stark contrast to the harsh “you’re out” style layoffs that exploded on TikTok as Gen Z turns the camera on their bosses.
Even in the U.S., the company is giving underperforming consultants three months to show improvement before having to face the music.
A McKinsey spokesperson told Fortune that its unusual approach to layoffs is all part of the company’s core mission to help people “learn and grow into leaders, whether they stay at McKinsey or continue their careers elsewhere.”
“These actions are part of our ongoing effort to ensure our performance management and development approach is as effective as possible, and to do so in a caring and supportive way.”
This story was originally featured on Fortune.com
