McKinsey layoffs show white-collar job cuts are spreading

Company Overview - McKinsey & Co. is planning to cut its workforce by as much as 10% in non-client-facing areas, potentially eliminating several thousand jobs over the next 18 to 24 months [1][2] - The firm's workforce has decreased from over 45,000 to closer to 40,000 due to stalled revenue growth and declining utilization rates as corporate clients cut budgets and delay projects [2] Industry Context - The consulting industry is experiencing simultaneous growth and contraction, with major firms like Accenture, KPMG, and Deloitte also announcing layoffs since 2023 [4] - The layoffs at McKinsey are seen as a significant indicator of a negative trend in the white-collar labor market, reflecting broader economic challenges [4] Economic Indicators - Federal Reserve Chair Jerome Powell indicated that the U.S. job market may be contracting, with potential job losses of about 20,000 per month, which could signal a more serious economic slowdown than previously reported [5] - The upcoming "double" jobs report is expected to provide critical insights into the labor market, particularly in light of recent government shutdowns and revisions to previous employment data [6]