Hot for its bot, McKinsey may cut thousands of jobs

Summary

Reports from Bloomberg (cited by The Register) say McKinsey is considering cutting a few thousand roles over the next 18–24 months, with some non-client-facing teams facing reductions of up to 10%. The firm points to rapid advances in AI as a major factor reshaping how it operates, though it won’t confirm exact numbers or that AI is the sole cause. McKinsey’s internal assistant, “Lilli”, and similar bots at peer firms are reducing time spent on research and synthesis, prompting a shift away from the traditional pyramid staffing model toward smaller, expert-driven teams focused on embedding AI into workflows.

Key Points

Bloomberg reports potential cuts of a few thousand jobs at McKinsey, possibly staggered across 18–24 months.
McKinsey says its internal assistant, Lilli, can reduce time spent searching and synthesising information by around 30%.
Other major consultancies have deployed internal bots too (Bain’s Sage, PwC’s ChatPwC, KPMG’s KymChat, BCG’s Deckster).
AI-driven tools are changing organisational structure from a large junior-heavy pyramid to a leaner, more expert-led model.
Research on AI’s labour impact is mixed — findings range from minimal effects to tens of millions of roles affected globally.
Industry demand for traditional strategy consulting appears to be shifting toward delivery, product fluency and measurable impact.

Context and Relevance

This story is a clear example of how AI is not just an external advisory topic for consultancies — it’s remaking their internal operations. For HR teams, consultants, clients who buy advisory services, and policymakers, the shift signals big changes in hiring profiles, skills demand (more AI-savvy and delivery-oriented roles), and the scale/timing of workforce reductions. It also highlights a broader trend across professional services where automation and internal AI are changing how value is created and sold.

Why should I read this?

Because the people who tell other firms how to cut costs are now doing it to themselves — and that gives you a pretty reliable preview of where consulting (and many white-collar jobs) is headed. If you hire consultants, work in consulting, or manage talent affected by AI, this is a lifesaver: quick, practical intel so you can plan, reskill or renegotiate engagements.

Author style

Punchy: This isn’t just another layoff story. It’s a signpost — big advisory houses are redesigning around AI and delivery. Read the detail if you care about future hiring patterns, vendor behaviour or the economics of advisory work.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2025/12/16/mckinsey_may_cut_staff/