McKinsey, Bain, BCG and Accenture trim junior ranks as automation reshapes staffing

Management consulting’s traditional pyramid structure, a small partner class supported by a much larger base of junior analysts, is being reshuffled by artificial intelligence. McKinsey & Company’s global headcount has slid from a peak of roughly 45,000 to about 40,000, including roughly 200 technology and support jobs cut in late 2025, with management signalling further reductions to non-client-facing roles. Bain, Boston Consulting Group and Deloitte have each slowed hiring or trimmed staff in 2026, with cuts concentrated at the analyst and associate level.

AI tools are responsible for driving this shift. McKinsey’s internal assistant, Lilli, fields more than 500,000 prompts monthly, with consultants reporting productivity gains of up to 30%. BCG chief executive Christoph Schweizer has told investors AI-related work will grow from roughly 20% of revenue in 2024 to about 40% by 2026. A 2023 Harvard Business School-BCG study of 758 consultants using GPT-4 found the AI-assisted group completed 12.2% more tasks, 25.1% faster, with quality scores over 40% higher.

One McKinsey senior partner told the Financial Times that work once requiring four associates over two weeks now takes a single associate roughly two days - a productivity gain for the firm, and a direct hit to the staffing leverage the pyramid model depends on.

- Saiee Katarkar

Asia Pacific’s mobile economy is expected to contribute $1.4 trillion to the region’s economy by 2030, a 40% increase from the roughly $1 trillion contribution today, according to a new GSMA report. 

The expansion is said to be driven by the rapid adoption of 5G, artificial intelligence (AI) and the Internet of Things (IoT). By 2030, 5G connections are forecast to reach 1.5 billion, accounting for half of all mobile connections across the region. Operators are also expected to invest more than $200 billion between 2025 and 2030, highlighting the scale of infrastructure needed to support this digital expansion. 

In terms of economic benefits, there is huge potential. Beyond telecommunications, the manufacturing and service sectors are expected to capture more than half of the productivity gains generated by advances in mobile technologies. 

The GSMA identified artificial intelligence, digital trust, digital sovereignty and infrastructure resilience as the key priorities for the region. Rising online fraud has made digital trust an increasingly important economic issue, while geopolitical tensions are pushing governments to seek greater control over crucial digital infrastructure. 

Hence, Asia’s digital transformation presents a huge economic opportunity, ensuring technological growth is not only fast, but secure and accessible.

- Ebbawaaq Adamu

India’s retail inflation rose to 4.38% in June 2026, moving above the Reserve Bank of India’s 4% target for the first time since January 2025. The acceleration was driven primarily by food prices, which climbed 5.32%, with sharp increases in ginger and tomatoes. Transport inflation also rose to 4.31% after several fuel price increases in May, reflecting the delayed impact of higher crude oil prices following tensions in the Middle East. The combination has placed renewed pressure on household purchasing power.

The outlook is complicated further by a weakening monsoon. India’s Meteorological Department had forecast below-normal rainfall for the first time in 11 years, while 21 of 36 meteorological subdivisions were experiencing rainfall deficits by late July. Uttar Pradesh and Madhya Pradesh, major producers of rice, pulses and oilseeds, have been particularly affected. Delayed sowing and weather disruptions have already contributed to a 16.5% weekly increase in vegetable prices, raising concerns that supply pressures could extend beyond the summer.

Despite these risks, the RBI kept its repo rate unchanged at 5.25% at its August meeting, signalling that policymakers expect the food shock to prove temporary. Governor Sanjay Malhotra indicated that July’s inflation data would be important before further decisions are made, while the central bank raised its FY27 growth forecast to 6.7%. The July CPI release will therefore provide a crucial test: if food prices ease as fresh harvests reach markets, the RBI may remain comfortable with its current stance. If inflation remains above target, however, policymakers could face a difficult choice between supporting growth and protecting price stability.

- Armaan Kapadia

Until next time,

The Long and Short

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