According to a Bloomberg report, Consulting giant McKinsey & Company is embarking on a rare round of major job cuts, with plans to eliminate about 1,400 jobs this week.
The job cut is nearly 3% of the total workforce. The company is laying off employees due to a global economic downturn.
The company is restructuring how it organizes its support teams starting this week, including workforce reductions or moving people into other roles, the report added.
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Bob Sternfels, the global managing partner, wrote in a note to staff that said, “The painful result of this shift is that we will have to say goodbye to some of our firm functions colleagues while helping others move into new roles that better align to our firm’s strategy and priorities.”
“Starting now, where local regulations allow, we will begin to notify colleagues who will depart our firm or be asked to change roles”, Bob Sternfels added.
McKinsey is restructuring and hence it is engaging in mass layoffs. The report suggested that the company is planning the job cuts as early as this week.
However, the company has rapidly grown in its headcount in the last couple of years. McKinsey has grown to nearly 47,000 employees from 28,000 in five years. The employee strength was 17,000 in 2012.
The first phase of layoffs begins at Disney
In February, Disney planned to sack 7,000 employees as part of a significant restructuring. The job cuts will be affecting the company’s following divisions:
- Media and distribution segment.
- ESPN and the parks and resorts division.
In an internal memo to employees, Disney CEO Bob Iger revealed that there will be three rounds of layoffs, with the first beginning this week.
Disney CEO Bob Iger wrote, “This week, we begin notifying employees whose positions are impacted by the company’s workforce reductions.”
“Leaders will be communicating the news directly to the first group of impacted employees over the next four days”, Bob Iger added.
“A second, larger round of notifications will happen in April with several thousand more staff reductions, and we expect to commence the final round of notifications before the beginning of the summer to reach our 7,000-job target”, Bob Iger further added.
So far in 2023, there have been 711 layoffs at tech companies with 212,555 people impacted (2,415 people per day). In 2022, there were 1,535 layoffs at tech companies 241,176 people were impacted.
