Beware How You Terminate Manpower, Brittany Pietsch Taught Global Employers: McKinsey Seems to Have Learned Much

 Yet another version of the good-bye. The Times was the first to report that once-iconic management consulting firm McKinsey has taken yet another step in reducing manpower. This one is to offer some staff in the UK and the US a certain period of full-salary, career coaching and access to firm's resources to prepare to exit employment. In the UK the terms are nine months. If after nine months there is no job offer elsewhere the professional still has to exit. In the US the terms are unknown as of yet.

The how of terminations has become a branding issue. Those given the boot, such as Brittany Pietsch, have hopped on social to tell their story. Interestingly, they have landed on their feet, being hired for other good jobs. 

Earlier, McKinsey had given negative performance evaluations to about 3,000. If they don't improve in three months they will be terminated.

Like so many in professional services McKinsey had bulked up hiring during the pandemic. Now it is saddled with bloat amid falling demand. 

In addition, it is burdened with a pile-on of scandals such as the residue of the Opioid crisis and taking on assignments in China which some perceive as a possible threat to US national security. 

Brit comic John Oliver made fun of its grandiose mission. That has resonated. 

Hatchet-job book "When McKinsey Comes to Town" features former employees being critical of the policies and practices of the firm. 

Overall, the sector it's in - management consulting - isn't expected to bounce back to its days of being a prestigious industry. 

Moreover, most forms of knowledge work are being threated by AI. That technology does more than make current processes more efficient. It can take a look at what is and determine such processes are not necessary or even relevant to getting a result. That whole traditional form of work can be wiped out.

In communications, the impacts of AI are already being experienced. For instance, IBM, a leader in AI applications, had had a RIF in its communications/marketing divisions. Its policy is that before filling any function with a human it first will review using AI. 

Law is yet to feel a massive hit from AI. But those I speak with predict that within a decade the sector will have been reconfigured by AI, with manpower needs significantly reduced. Currently, demand is uneven. Some firms such as Kirkland & Ellis and Paul, Weiss are going gangbusters. Others remain slow enough for junior lawyers to worry about being forced out. The law firms have myriad sophisticated tools to lop off excess manpower. 

In my coaching, those who have lost their employment in knowledge work usually come to accepting new-to-them lower-paying career paths. Most think in terms of certification and licensing as well as creating micro enterprises. Especially vulnerable is the management function. In layoffs, 30% of those axed have been in middle-management. 

In most cases you have only one shot in communications. Jane Genova is a communications coach and content-creator. Complimentary consultation (please text 203-468-8579 or email janegenova374@gmail.com)

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