MBB Application and Recently Announced Layoffs

Hi there,

I think this is an interesting question that may be relevant for many people. I would be happy to share my thoughts on it:

• First of all, I think you need to put things into perspective regarding the McKinsey layoffs since they are essentially a non-event. While we do not know for certain about the root cause, from the information provided, chances are very high that they simply wanted to outsource certain consulting support functions, which is nothing surprising for strategy consulting companies.
• As for the future, we really cannot tell. So far, to my knowledge, there have not been any layoffs besides with McKinsey and KPMG (cf. https://www.preplounge.com/en/consulting-forum/kpmg-layoff-15443), but recruiting has slowed down or been frozen altogether, and start dates have been delayed.
• Personally, I would advise you to apply nonetheless since there really isn't any way to navigate the situation either way. Make sure you have your strongest application and see about the results.

If you would like a more detailed discussion on how to best prepare for your upcoming interviews with McKinsey, please don't hesitate to contact me directly.

Best,

Hagen

Hi there

1) I am currently considering applying to McKinsey. Should I be concerned about the recently announced layoffs in the news and delay my application? Are they still hiring or slowing/freezing recruitment across the company?

It depends on the country. In some countries McKinsey and other MBB are in a hiring freeze so it would not make sense to apply there now. 

The best way to know if you are not sure about your particular country is look for a referral and ask them, which is going to strengthen your application anyway.

You can find more on referrals below:

▶ How to Get an MBB Invitation

▶ The Exact Steps to Get a Referral

2) Does the layoffs predominately impact corporate functions and/or consultants? Are there any specific functions/industries to avoid as they are slowing down project wise?

From what they announced, the layoff should focus on support staff.

Best,

Francesco

Hi there,

I joined McKinsey during the financial crisis - and I would totally do it again. Eventually the economic climate will change which gives you the opportunity to see different types of projects - from restructuring to growth related.

Don't worry too much. They keep hiring & quality candidates get in.

Andreas

Hi there,

If you have a referral and if they are telling you to apply, you should apply.

This is universally true! And, it's exactly why we network.

Remember that the current market is different across geographies and that MBB still recruit even in downtowns (there is 20% churn they need to replace). 

Please make sure you're networking in order to 1) get a referral and 2) get info on whether it's the right time for you to apply at that particular office.

I am an ex-McKinsey consultant so am just reflecting what I know.

As announced, the layoffs are only impacting non-consulting staff.

A big part of the McKinsey model is based off ensuring the “pyramid”, which means they have to keep recruiting.  What they'll likely do is slow promotions - and this will in turn also mean that more people leave.

They won't really lay-off by sector - but obviously some sectors will be impacted more than others, and you can probably see which industries are being more impacted by the current climate (e.g,, tech).   This will mean more junior consultants naturally end up on engagements elsewhere.

All to say - I'd carry on like normally if you're applying!

Hi there,

you won’t really be able to time the market. If you sit on the sidelines and don’t apply waiting for better times, you might end up waiting for a long time. You may as well give it a try and if it doesn’t work out, the resulting ban period would overlap with the economic downturn.

You also might want to apply to a number of consulting firms to increase your odds.

Agree with the others here that you should try to get referrals from consultants working at the respective companies. 

Also keep in mind that once the economy turns around again, consulting firms will have to be hiring on all cylinders to be able to deliver their project pipelines.

Good luck 

Hi there,

You have nothing to loose.

All firms are still hiring (or hiring again) and I can tell from my coaching activity that the Q1 slowdown is slowly picking up again. It may not be last years' level but there's good activity.

As for yourself, you can always try to get an interview. At that stage, there's a position waiting for you. If unsuccessful at the application stage, you can try again in 6 months time. The famous ‘ban’ is generally for people that actually interviewed.

Hope this helps a bit. Best of luck!

Moritz

If you apply you may get an interview. If you fail you can apply again one year from now (with additional interviewing experience).

If you delay for one year you don't get an interview now, only in one year.

I don't see what you gain from not applying, but it is quite evident that you are wasting one chance to be accepted.

Hi there!

The situation is getting better by now. 

Realistically, the market is not something you can influence. You can only adjust your response to it. 

My recommendation would be to apply as early as possible, as broadly as possible. Basically, diversify to minimise your risk and maximise your chances of getting an offer. Worse case scenario, you learn from the experience, which is still a pretty awesome result. 

Sharing with you a guide that goes deeper into how to set up an application strategy:

• Free Guide: Build A Winning Application Strategy

Best,

Cristian

…………………………………………………………………………………………………………………………………………

Practicing for interviews? Check out my latest case based on a first-round MBB interview >>> SoyTechnologies  

MBB is still hiring - they have learnt through various recessions that if you stop hiring, you will be in a real pickle when the recession ends and you have to train everyone up again from scratch. It is more challenging then in a boom period to get a role for sure, but still entirely possible.