In yet another move in the ongoing wave of job cuts, McKinsey & Co. eliminated around 200 global tech positions last week as the consulting giant embraces AI to automate certain roles. The firm may announce further reductions across various functions over the next two years while evaluating tasks suitable for AI integration, sources said.
Bob Sternfels, the Global Managing Partner, stated that McKinsey is prioritizing investments in roles that directly engage with clients, while closely reviewing staffing levels in other departments. The consultancy, which has been in operation for nearly 100 years, employs around 40,000 people, including approximately 3,000 partners.
“We are continuing to add folks who are client deployed,” Sternfels said in a Bloomberg television interview in September. “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.”
The sector is facing several obstacles, such as reduced corporate budgets and shifts in government policy. Competitor Accenture Plc has indicated that anticipated cuts in U.S. federal spending on consultancy services may hinder its growth in the coming year, despite surpassing revenue forecasts in the fourth quarter.
CEO Julie Sweet informed analysts during the September earnings call that the company is letting go of employees who cannot be retrained, as it shifts its focus toward more automated, AI-driven operations.
Advances in computing are reshaping the workforce, leaving many roles vulnerable to automation. According to Bloomberg Intelligence, global banks could cut as many as 200,000 jobs over the next three to five years as AI takes on tasks traditionally handled by humans. JPMorgan Chase CEO Jamie Dimon has acknowledged the efficiency gains while noting the potential for job displacement.