1) I am currently considering applying to McKinsey. Should I be concerned about the recently announced layoffs in the news and delay my application? Are they still hiring or slowing/freezing recruitment across the company?
It depends on the country. In some countries McKinsey and other MBB are in a hiring freeze so it would not make sense to apply there now.
The best way to know if you are not sure about your particular country is look for a referral and ask them, which is going to strengthen your application anyway.
You can find more on referrals below:
▶ How to Get an MBB Invitation
▶ The Exact Steps to Get a Referral
2) Does the layoffs predominately impact corporate functions and/or consultants? Are there any specific functions/industries to avoid as they are slowing down project wise?
From what they announced, the layoff should focus on support staff.