McKinsey Lays Off 200 Tech Employees Amid Shift to Artificial Intelligence

McKinsey & Co. has let go of around 200 technology employees in the past week as the firm shifts more internal tasks to artificial intelligence. The reductions are part of an ongoing review that could impact more roles over the next 2 years, according to the news reports. 

Internal Roles Under Review 

The jobs affected sit largely in support and back-end functions, rather than in work that involves direct interaction with clients. These include tasks that can be automated using software.  

McKinsey has been running assessments to determine which parts of its operations can be handled by AI tools. The firm said the aim is to reduce time spent on work that does not require human judgement. 

Focus Remains on Client Work 

Hiring continues in areas tied to client delivery. McKinsey employs about 40,000 people worldwide, including roughly 3,000 partners. Within the company, leadership has previously said that roles supporting client projects are expected to grow. Other functions are being examined more closely for potential restructuring. 

Reskilling Before Cuts 

Employees in affected departments were first offered training opportunities to move into roles that involve using AI systems. Those who could not be shifted into new positions are part of the current layoffs.  

This process shows how job requirements are changing as automation becomes part of daily operations rather than being limited to specialised teams. 

Layoffs Extend Beyond Consulting 

Changes driven by artificial intelligence are not confined to consulting. Bloomberg Intelligence projects that global banks alone could cut up to 200,000 jobs over the next three to 5 years as software takes over repeatable tasks.  

Citigroup has previously estimated AI could add about $170 billion in value to the banking sector by 2028, with around 54% of roles showing strong potential to be automated. 

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Conclusion 

The latest cuts at McKinsey point to a shift in how large companies manage their workforce as automation expands. Internal tech roles are being replaced or reshaped, while work tied to client needs and AI-related skills remains a priority. 

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