New Delhi: In a major shift driven by artificial intelligence, global consulting giant McKinsey & Co. has reportedly laid off around 200 employees from its technology divisions in the past week, as per Bloomberg’s report. The move is part of McKinsey’s broader push to automate internal operations using AI aligning with a growing trend of companies restructuring their workforce as advanced tech transforms traditional roles.
The report also mentioned that McKinsey could cut more support roles over the next two years as it increases the use of AI. The company is currently evaluating which tasks can be shifted to AI systems as part of a wider effort to boost efficiency.
A company spokesperson, in an emailed statement, said the shift is aimed at improving efficiency with the help of advanced technology. “AI is enabling unprecedented levels of opportunity and impact for us and our clients,” the spokesperson said. “We are continually working to make our professional support functions more efficient and effective, including by taking advantage of AI.”
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Global Managing Partner Bob Sternfels has said the firm plans to continue investing in roles that directly work with clients, while keeping a close watch on staffing in other areas. McKinsey, which has been around for nearly 100 years, currently employs about 40,000 people, including around 3,000 partners.
In a Bloomberg TV interview in September, Sternfels emphasized that the company is prioritizing roles that directly work with clients. “We are continuing to add folks who are client deployed,” he said. “We will upskill folks more, we will probably have fewer folks in the non-client deployed areas, but they will be leveraged by today’s technology and AI.”
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McKinsey’s decision comes at a time when the consulting sector is dealing with multiple challenges from tighter corporate budgets to changing government policies and fast-evolving technology. The rapid adoption of AI is already transforming workforce strategies worldwide. In the banking sector alone, as many as 200,000 jobs could be cut over the next three to five years as tasks once done by humans become automated. JPMorgan Chase CEO Jamie Dimon has said repeatedly that while AI will replace some roles, it will also open the door to major new opportunities.
The world’s largest banks have been testing and expanding AI tools in recent years, drawn by the promise of higher productivity and reduced expenses. Citigroup has estimated that AI could bring an additional $170 billion dollars in revenue to the banking sector by 2028, and says that more than half of existing roles about 54 per cent have a strong potential to be automated.
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