McKinsey Layoffs: US Consulting Giant To Lay Off Around 500 Employees in China Amid Restructuring Efforts
McKinsey is reportedly laying off 500 employees in China to address security concerns and reduce ties with government-linked clients in the country.
New Delhi, October 18: McKinsey is reportedly preparing to lay off around 500 employees in China as part of its restructuring efforts. As per reports, the decision comes amid rising concerns about security risks associated with its operations in the country. The US-based consulting giant is reportedly looking to reduce ties with government-linked clients in China.
As per a report of Wall Street Journal, McKinsey is laying off 500 employees in its China unit. To reduce security risks associated with doing business in China, the US-based consulting firm has been separating its China operations from other global operations. McKinsey has allegedly came under political scrutiny in the US due to its business dealings in Saudi Arabia and China. Intel Layoffs: Chipmaker Is Lays Off Over 2,000 Employees in US Amid Cost-Cutting Measures.
It follows McKinsey's decision to reduce its involvement with government-linked clients in China, as per a report of Business Standard. In 2023, McKinsey laid off around 1,400 employees, mostly in support roles. The decision impacted roughly 3 per cent of its total workforce across the world. Even with these job cuts, McKinsey ended the year reporting a record revenue of USD 16 billion.
McKinsey has more than 45,000 employees in 130 cities around the world. In the Greater China region, which consists of mainland China, Hong Kong, and Taiwan, many employees have been laid off in the last two years. Reports suggest that by June 2023, almost 1,500 employees featured on its website for Greater China. Meta Layoffs: Social Media Giant Lays Off Employees From WhatsApp and Instagram Teams and More Amid Restructuring Efforts.
Last year, several companies paused their hiring, slowed down recruitment, and laid off employees due to a drop in client demand. McKinsey has faced changes in the demand for its services, leading the company to reconsider how many employees it needs. Earlier this year, McKinsey made an unexpected proposal to some of its employees. They offered a voluntary exit package. The package provided nine months of salary to those who chose to leave the firm willingly.
(The above story first appeared on LatestLY on Oct 18, 2024 11:57 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).