McKinsey & Company announced that it has cut about 200 technology-sector jobs worldwide, a step the firm says supports its growing shift toward automation powered by Artificial Intelligence.
The company is gradually introducing more AI tools to its offices worldwide, aiming to streamline work and reduce costs.
McKinsey uses AI to replace staff in support jobs
McKinsey has cut 200 tech jobs in its offices worldwide over the past week, as the company believes AI can work faster, better, and more cost-effectively than people. The company will retain employees with roles that can only be performed by humans, such as directly assisting clients.
Inside reports indicate that the consulting firm will cut more jobs over the next two years and is evaluating all the tasks in its support teams to determine which ones AI can perform or replace entirely.
A spokesperson for McKinsey said AI brings “unprecedented levels of opportunity” for the company and its clients. Hence, the firm aims to make its support teams faster and smarter using technology. The consulting firm will replace boring, repetitive, and time-consuming tasks with AI, allowing humans to focus on jobs that require critical thinking, judgment, creativity, and personal attention, as machines are currently flawed in these areas.
The global managing partner of McKinsey, Bob Sternfels, stated that the company will continue to hire and train individuals for roles that involve interacting with clients, solving problems, and learning to utilise AI. He explained that humans and AI can work together to strengthen the company, enhance employee performance, and deliver better results to clients.
McKinsey already has approximately 40,000 employees worldwide and around 3,000 partners. The company has a strong reputation for helping clients across various industries, so the recent job cuts and replacement with AI demonstrate that nobody can ignore or escape technology, especially when it makes work faster, cheaper, and more efficient.
AI changes how companies operate as they deal with tight budgets and moving jobs
Companies around the world are facing significant pressure due to shifting spending activities, the creation of new rules by governments daily, and the rapid advancement of technology, particularly AI, which is transforming the way people work.
Almost every business has to revise its structure, and because budgets are now smaller, they cannot continue to pay for all the staff they had before and still deliver the same efficient services to clients. These dire situations force companies to decide which roles to keep, which ones AI can support, and those that machines can do without human intervention.
Accenture is one of the consulting firms, alongside McKinsey, that is experiencing this pressure. The company stated that cuts in U.S. federal spending on consulting work will slow growth next year, so it is investing in AI to make work faster, more accurate, and more cost-effective.
At the same time, it is reducing the number of staff who cannot be trained for new AI-related roles and training 700,000 workers to use “agentic AI technologies.”
This trend is also occurring in many other industries, and reports suggest that global banks may eliminate as many as 200,000 jobs over the next three to five years, as AI is expected to replace their roles.
Industry leaders say these changes are just as valuable as they are disruptive. Jamie Dimon, CEO of JPMorgan Chase, stated that AI will lead to job losses, but it will also increase efficiency, create value, and enable many companies to serve their clients better.
Citigroup even predicted that AI could add as much as $170 billion to banking profits by 2028 and that the technology could replace 54% of banking roles.
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