McKinsey Considers 10% Job Cuts as AI Reshapes Consulting Industry

Mohammedia – McKinsey & Company is considering further job cuts that could affect thousands of employees worldwide as artificial intelligence continues to reshape how consulting work is carried out.

First reported by Bloomberg, the plans involve reducing staffing by about 10% in some non-client-facing teams, potentially impacting a few thousand roles.

The reductions would be phased in gradually over the next 18 to 24 months, with no final decisions yet made on the exact number of jobs or the countries that could be affected.

The focus would mainly be on support and back office functions rather than consultants who work directly with clients.

A McKinsey spokesperson said the review comes as the firm prepares to mark its 100th anniversary in 2026.

The spokesperson said rapid advances in AI are transforming business and society, and that McKinsey is looking to improve the efficiency and effectiveness of its support functions, reflecting the same changes it advises clients to make.

Founded in 1926 by James McKinsey, an accounting professor at the University of Chicago, the firm has grown into one of the world’s most influential management consultancies.

It advises corporations and governments on strategy, technology adoption, market entry, and cost reduction, with clients including Coca-Cola, Goldman Sachs, and public institutions around the world.

McKinsey expanded rapidly over the past decade. Its global workforce grew from around 17,000 employees in 2012 to roughly 45,000 by 2022, following years of strong demand for consulting services.

That growth has since reversed. After layoffs in 2023, total headcount has fallen to under 40,000, with roughly half of staff employed in non-client-facing roles.

This would not be the firm’s first round of cuts. In 2023, McKinsey eliminated up to 2,000 positions in back office and support teams as part of an internal restructuring initiative known as Project Magnolia.

In 2024, around 360 to 400 employees were laid off, mainly among technical specialists in design, data engineering, cloud services, and software development.

More recently, the firm cut about 200 global technology jobs as some roles were automated using AI tools. In total, McKinsey has reduced its workforce by around 5,000 over the past five years.

Bob Sternfels, McKinsey’s global managing partner, has previously said the firm would likely have fewer people in non-client deployed roles in the future, while continuing to hire consultants working directly with clients.

The planned cuts come as AI increasingly handles tasks once performed by junior consultants and support staff, such as data analysis, modeling, and drafting reports.

They also come amid a broader slowdown in consulting demand, as companies become more cautious with spending.

McKinsey’s annual revenue has remained broadly flat in recent years, adding pressure on firms to control costs while adapting to long-term changes in how consulting services are delivered.