Elite strategy consulting firm McKinsey lost 2 per cent of its Australian workforce in 2022 thanks to its “up or out” approach of managing lower performing staff out rather than directly dismissing them.

The management style has long been an open secret in the professional services industry, but McKinsey was forced to detail its tough stance on those falling short of its “high-performance environment and rapid development expectations” for the first time in documents filed with the Senate inquiry into consulting in December.