‘Largest headcount reductions in our history’: McKinsey confirms 5K drop, disputes layoff label

What’s going on at McKinsey?

McKinsey & Company has seen its global workforce shrink by more than 10% over the past 18 months – from over 45,000 at the end of 2023 to around 40,000 in mid-2025 – according to reporting by the Financial Times.

• The consultancy described the cuts as “one of the largest headcount reductions” in its nearly 100-year history.
• The firm attributes the decrease not to mass layoffs, but to a mix of natural attrition and tightened performance reviews.
• A statement to People Matters clarified: “These changes… were not the result of ‘layoffs,’ but rather our traditional performance management process working as it always has.”

Behind the cuts

The contraction follows a years-long expansion strategy that boosted McKinsey’s headcount dramatically.

• Between 2018 and 2023, McKinsey grew rapidly into digital and implementation services.
• By the end of 2023, staff levels had reached more than 45,000 globally.

However, industry-wide consulting demand has slowed post-pandemic, prompting firms to realign.

• SEE ALSO: Layoffs in Canada: Find out which employers are slashing staff

Who was affected?

In 2023, McKinsey cut 1,400 administrative roles, followed by another 400 data and software engineers. The firm also implemented stricter performance evaluations, which led to further consultant departures. While not classed as layoffs by the company, the impact on the workforce mirrors more formal job cuts at peer firms.

McKinsey’s retrenchment comes amid mounting external and internal pressures:

• The firm has agreed to $1.6 billion in U.S. settlements over its past work with opioid manufacturers.
• A slowing consulting market and lower voluntary turnover post-Great Resignation have led many firms to restructure.

Next steps for McKinsey employees

If you’re fired or let go from McKinsey, understanding your legal rights is crucial.

Non-unionized employees in Canada are entitled to severance pay. The amount you’re owed is based on a variety of factors, including your role, tenure, age, and ability to find similar work.

WATCH: Employment lawyer Lior Samfiru delves into severance pay on an episode of the Employment Law Show.

Here’s what you need to know:

• Compensation: Severance packages, which can be as much as 24 months’ pay, may include salary, bonuses, commissions, and other forms of compensation. Use our firm’s free Severance Pay Calculator to better understand your entitlements.
• Deadlines: You generally have up to two years from the date of your termination to review and negotiate severance offers.
• Action steps: Consult an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package is fair and aligns with Canadian employment laws.

Lost your job at McKinsey? Contact us

If you’ve been fired or let go from McKinsey, the experienced employment law team at Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and B.C. have helped tens of thousands of non-unionized individuals resolve their workplace issues.

Call us today at 1-855-821-5900 or request a consultation online.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.