McKinsey is overhauling its China business after cutting back on government-linked clients and reducing the unit’s workforce by nearly 500 people, about a third of the total. Joe Ngai, the head of McKinsey’s China business, said the company’s employee-attrition rate in the country has been at its historic average of around 20%, but it has slowed hiring. Its latest strategy calls for helping multinational companies navigate China’s changes, advising Chinese companies that want to expand overseas and working with Chinese companies going through executive transitions, said Ngai. These have included China Construction Bank and China Telecom, which McKinsey advised on digitization and operation management projects. Last year, foreign consulting firms’ revenue in China fell 6.3% while local consultants increased revenue slightly, according to Chinese consulting market-research firm Shensixing.

Source: Wall Street Journal October 17, 2024 07:40 UTC