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McKinsey Prepares Cuts to Back-Office Staff as AI Advances, Up to 10% in Some Areas

Discussions remain preliminary with reductions expected to be phased in over 18 to 24 months.

Overview

  • Bloomberg and The Times report the firm is drawing up plans that could eliminate several thousand non-client-facing roles.
  • Targeted reductions would focus on support functions, which account for about half of McKinsey’s roughly 40,000 employees.
  • A company spokesman cited rapid advances in artificial intelligence and an internal push for efficiency but declined to confirm numbers.
  • Senior partners have begun initial talks on shrinking teams, and no final decisions have been made on the size or geographic scope.
  • The move follows stalled revenue growth and sector-wide cutbacks at major consultancies since 2023, as Fed Chair Jerome Powell warns official U.S. hiring data may be overstating job gains.