Is there any history of layoff at management consulting firms like McKinsey, BCG, Bain, etc?
We’ve cut a slightly higher number of underperformers
MBB usually can afford not to layoff consultants during economic downturns, such as the financial crisis. But be aware that they operate in an up-or-out system. Around every two years, if you are not making the next promotion, you are laid off
Generally don't since it really cuts their capacity to bill hours to clients. Under-performers are fired faster when times are bad.
Most consulting companies shed folks who can’t charge for a few months, and this happens more in a downturn. Since they are up-or-out anyways, it doesn’t usually look like a lay-off. It’s just more aggressive business as usual.
Last recession McK just reduced hiring then had to pick up again on the other side of it. Layoffs at the big 3 (McKinsey, Bain, BCG) are very rare because the financial buffer is big, their people are their only asset and clients call the firms in on the downside as well as the upside. So, if you work there, you're not getting "laid off", but you could be "up or outed" or burn out due to workload/stress, but that's the case in any economy.
AKA, nothing changed, your job was never secure 😅
Yup. Tends to be less hiring and ratchet up performance management. Partner performance will be more heavily scrutinized too and then will be asked to leave. It is often very discreet vs a big process. But consulting is a supply driven business so there is a reluctance to cut (deep) Think back office roles may undergo more structured layoffs
Their people are their product. Layoffs is like throwing away inventory for them. Just a random opinion, have no idea if they do layoffs haha.
Depends how bad things get. Big 4 was hemorrhaging during the 08 crisis and it forced them to be more lean, but now they have grown too fat again. Big 3 never disclosed layoffs but I know from friends that performance based firings became stricter. IT outsourcing grew as “your mess for less” became really appealing, but that won’t happen this time due to automation.