McKinsey cuts hundreds from China workforce
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Subscribe to enjoy similar stories. McKinsey is overhauling its China business after cutting back on government-linked clients and reducing the unit’s workforce by nearly 500 people, about a third of the total. To reduce security risks associated with doing business in China, the U.S.-based consulting firm has been separating its China operations from other global operations, people familiar with the matter said—a practice increasingly popular among multinational companies.
Western businesses with decades of experience in China—both McKinsey and those it advises—are facing some of their most challenging times because of geopolitical tensions and the slowing Chinese economy. McKinsey has been facing scrutiny in Washington over work linked to the Chinese government, while some Chinese clients have been shifting to local rivals. Over the past two years, McKinsey’s workforce in Greater China, which includes Hong Kong and Taiwan, has shrunk by hundreds of employees, people familiar with the matter said.
McKinsey in June 2023 referred to having nearly 1,500 employees in the region on its Greater China website. Joe Ngai, the head of McKinsey’s China business, said the company’s employee-attrition rate in the country has been at its historic average of around 20%, but it has slowed hiring. McKinsey still has more than 1,000 employees in Greater China, he said.
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