AI effect: Consulting giant McKinsey fires 200 tech employees
What's the story
McKinsey & Company has laid off around 200 tech employees globally in the last week. The consulting giant is following its competitors in leveraging artificial intelligence (AI) to automate certain positions. The company isn't ruling out further job cuts across different functions in the next two years as it increases its use of this technology, according to Bloomberg.
AI integration
McKinsey's strategic shift toward AI
A spokesperson for McKinsey said, "AI is enabling unprecedented levels of opportunity and impact for us and our clients." The company is constantly looking to make its professional support functions more efficient by leveraging AI. Global Managing Partner Bob Sternfels has said that McKinsey is focusing on investing in its client-facing roles while reviewing headcount in other areas.
Workforce strategy
Future plans amid industry challenges
Sternfels said in a Bloomberg interview that the company will continue to hire for client-deployed roles. However, there will be fewer employees in non-client deployed areas as they will be leveraged by today's technology and AI. The consulting industry is facing many headwinds, including tighter corporate budgets and government policy changes.
Staffing adjustments
Accenture's response to AI
Accenture, another consulting giant, has also been affected by the rise of AI. CEO Julie Sweet said on a September earnings call that her firm is cutting staff who cannot be retrained as it pivots to more automated AI-related work.