Hot for its bot, McKinsey may cut jobs (www.theregister.com)

McKinsey & Company is reportedly considering layoffs that could affect thousands of roles as it navigates the changing landscape shaped by rapid AI advancements and a push for operational efficiency. The consulting giant, which is approaching its 100th anniversary, is assessing its workforce in light of the internal deployment of AI tools, such as its assistant "Lilli," which can reportedly reduce time spent on research tasks by up to 30%. While the exact number of potential job cuts and the sole role of AI remain unconfirmed, discussions suggest reductions of up to 10% in certain non-client-facing teams over the next 18 to 24 months. The significance of this move highlights a broader trend within the AI/ML community, where consulting firms like McKinsey are evolving their organizational structures to better integrate AI into their workflows. As the industry faces conflicting reports on AI's impact on employment, the shift from a traditional pyramid structure to a leaner obelisk model reflects a renewed focus on efficiency and expertise rather than merely bolting AI onto existing frameworks. This transformation illustrates a pivotal moment for consulting firms as they adapt to a marketplace increasingly driven by technology-savvy executives who demand measurable impact over traditional consulting methods.