McKinsey Issues Ultimatum to Staff Amid Business Slowdown

McKinsey & Co. is intensifying pressure on its North American senior staffers by imposing promotion deadlines, following poor performance reviews and a slowdown in the consulting business. The firm's ultimatum to move up or out has been conveyed through memos sent to engagement managers and associate partners, indicating an average promotion period of two and half years. With demand for consulting services declining, McKinsey and other big firms like Accenture and Deloitte are facing revenue challenges, prompting cost-cutting measures and offering payouts to some employees. McKinsey's recent internal performance scrutiny has raised concerns for around 3,000 employees, increasing the pressure to meet high performance standards. The firm emphasized its commitment to attracting and nurturing top talent and highlighted its focus on professional development. As tough decisions loom for staff, McKinsey's actions reflect the broader challenges affecting the consulting industry amidst economic headwinds.