(Reuters) – U.S. consulting firm McKinsey is reorganizing its operations in China after reducing the number of government-linked clients and cutting about 500 jobs, representing about a third of its workforce in China, the Wall Street Journal reported on Wednesday.
According to the report, citing people familiar with the matter, the company is separating its China branch from its global operations to reduce the security risks associated with doing business in the country.
The report shows McKinsey has reduced its workforce in Greater China, including Hong Kong and Taiwan, by hundreds of employees over the past two years. The report shows that in June 2023, the company listed almost 1,500 employees on the Greater China website.
McKinsey did not immediately respond to Reuters’ request for comment outside regular business hours.
