McKinsey's CEO breaks down how AI is reshaping its workforce: 25% growth in some roles, 25% cuts in others

At the recent Consumer Electronics Show in Las Vegas, McKinsey's global managing partner, Bob Sternfels, provided insights into how artificial intelligence is transforming the consulting firm's workforce. During a live recording of the 'All-In' podcast with Jason Calacanis and Hemant Taneja, Sternfels unveiled a striking balance in job growth and cuts within the company, coining it the '25 squared' strategy. Sternfels explained that McKinsey is experiencing a 25% increase in client-facing roles—those typically associated with consultants—while simultaneously reducing non-client-facing positions by the same percentage. Despite these fluctuations, the firm has managed to achieve a net growth in overall productivity, particularly as output from non-client-facing roles has risen by 10%. This shift marks a significant departure from the traditional belief that growth requires an increase in total headcount. "Now, we can expand in client services and reduce in other areas, achieving aggregate growth," he remarked, highlighting a new operational paradigm. The adoption of AI has led to substantial productivity enhancements, with McKinsey reportedly saving 1.5 million hours in search and synthesis tasks last year. As a result, consultants are now focusing on more complex challenges rather than routine tasks typically handled by junior staff. Furthermore, Sternfels mentioned the growing presence of AI agents—digital employees that function autonomously—within the company. Currently, McKinsey employs 40,000 human workers alongside 25,000 AI agents, a number expected to equalize by year's end. For newcomers entering the job market, Sternfels emphasized the importance of developing skills that AI cannot replicate, such as human judgment and creativity. Reflecting on broader industry trends, he noted that established companies face a critical choice: adapt to the changing landscape or risk obsolescence. "Organizations are moving at warp speed," he stated, underscoring the urgency for companies to enhance their operational agility in the face of rapid technological advancements.