Global consultancy McKinsey is promoting fewer people to the coveted role of partner this year. The whole industry is facing headwinds due to economic uncertainties.
Only about 250 people will become partners at consulting giant McKinsey in the coming year, the «Wall Street Journal» (behind paywall) reported it had been told by sources. In the past year, McKinsey made around 380 people partners. This means the number of new partners will be down by around a third. The «Mackies» are suffering from the fact that the economic slowdown has made companies more cautious when it comes to awarding consultancy contracts. Around 2,000 job cuts are planned in spring, primarily in back-office roles.
«We are proud to celebrate the election of 248 partners, who represent our distinctive, inclusive and proudly global Firm», a spokesperson told finews.com.
Reports have also recently emerged that McKinsey and its competitor Boston Consulting Group (BCG) have frozen starting salaries for new hires this year. In the aftermath of the COVID pandemic, there was still strong competition for graduates, which drove up starting salaries. According to media reports, new hires in the U.S. are being offered starting salaries of around $140,000.
Almost 100 Years Old
The higher number of new partners appointed in 2021 and 2022 can also be explained by a backlog effect due to COVID-19.
Globally, McKinsey reports that it has around 45,000 employees, making it the market leader in the industry ahead of BCG, Bain & Co., and Oliver Wyman. The consultancy firm, which will celebrate its centenary in 2026, has 130 offices in 65 countries.
Left Empty-Handed in the Credit Suisse Takeover
In Switzerland, McKinsey has offices in Zurich and Geneva, which have around 60 partners and a total headcount of more than 500. Since summer 2022, McKinsey Switzerland has been headed by managing partner Michael Steinmann.
McKinsey and the other bidders were beaten by Oliver Wyman in what was probably the biggest and most prestigious consultancy contract of the year: planning the integration of Credit Suisse into UBS. Moreover, Big Four firm PWC reported that it had reached the number-one spot in the consultancy sector in Switzerland this year, overtaking its competitor Deloitte.
