McKinsey & Co. cuts 200 jobs and goes all-in on AI
US consulting firm McKinsey & Co. has cut around 200 jobs in the technology sector worldwide. The move is part of the company’s strategy to use artificial intelligence (AI) to automate certain functions, and follows a trend among its competitors in the industry.
Sources familiar with McKinsey’s plans indicate that more jobs across various roles may be cut over the next two years as the firm increasingly deploys AI.
According to those sources, McKinsey is actively assessing which tasks can effectively be carried out by AI. A company spokesperson stressed that AI offers unprecedented opportunities for both McKinsey and its clients. The firm also pointed to its ongoing efforts to improve the effectiveness and efficiency of professional support functions, including through the use of AI.
The company employs around 40,000 people, including roughly 3,000 partners. In an interview in September, global managing partner Bob Sternfels (pictured) said that McKinsey planned to increase the number of client-facing staff while reducing headcount in non-client-facing roles. He emphasised that the remaining employees would benefit from current technologies and advances in AI.
The rapid progress in computer science is creating staffing dilemmas across multiple industries, as the technology renders many roles redundant. Bloomberg Intelligence predicts that banks alone could cut up to 200,000 jobs worldwide over the next three to five years, as AI takes over more and more tasks traditionally performed by humans.
Jamie Dimon, CEO of JPMorgan, has consistently highlighted AI’s potential benefits and has openly acknowledged its role in shifting jobs. Major banks around the globe have been experimenting with AI for several years, driven by its potential to boost productivity and cut costs. Citigroup has previously estimated that by 2028 the technology could generate an additional $170 billion (about €146.9 billion euros) for the banking sector, with a significant share of roles likely to be automated.
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