McKinsey cuts 200 tech jobs as AI overhauls support teams

McKinsey & Company has cut around 200 technology roles worldwide as the consulting firm accelerates its shift towards automating support work with artificial intelligence. The reductions mark one of the clearest signals yet that back-office functions across professional services are being reshaped by rapid advances in AI.

As per media reports, the job cuts were carried out over the past week as McKinsey expands the use of AI tools designed to streamline internal processes and reduce operating costs. The firm is evaluating tasks across its support teams to determine which activities can be automated or replaced entirely.

A McKinsey spokesperson said AI presents “unprecedented levels of opportunity” for the firm and its clients, noting that the aim is to make support operations “faster and smarter” through automation. The company intends to retain roles that require human judgement, client interaction and contextual understanding—capabilities executives say machines still lack.

Bob Sternfels, McKinsey’s global managing partner, told internal audiences that the firm would continue to hire and train people for client-facing and problem-solving roles while embedding AI into routine workflows. He argued that human-machine collaboration would strengthen the firm and improve outcomes for clients.

The restructuring comes as consulting firms confront tighter client budgets, shifting regulatory requirements and a rapid acceleration of generative AI adoption. Reuters has reported that companies across sectors are reassessing cost structures and workforce models as automation becomes more capable and commercially viable.

Accenture has issued similar warnings, saying reduced US federal spending on consulting will weigh on growth and accelerating its own push into AI-driven efficiency. The firm is training 700,000 employees in new AI technologies while phasing out roles that cannot transition.

Financial services are also bracing for significant change. Industry reports suggest that global banks could cut up to 200,000 jobs in the next three to five years as AI tools take over operational and analytical tasks.

JPMorgan Chase chief executive Jamie Dimon has said AI will inevitably lead to job losses but also deliver gains in productivity and client service. Citigroup has forecast that AI could add as much as $170bn to banking profits by 2028 and potentially automate more than half of banking roles.

For McKinsey, the latest cuts underscore how deeply AI is starting to influence even the largest advisory firms—organisations traditionally shielded from automation. With more than 40,000 employees and around 3,000 partners globally, the firm’s pivot signals a broader recalibration of talent models as the industry prepares for a more automated, data-driven era.