McCarthy has worked for Variety since 1979. His movie reviews have been highly rated throughout the industry.
The magazine is also likely to bid farewell to its senior film critic Derek Elley and theatre critic David Rooney. Both of them are presently freelancing review work.
However, the magazine's chief television critic Brian Lowry will be retained.
Variety's publisher Neil Stiles said they will eliminate all full-time review staff for film and theatre.
The weekly's owner, Reed Business International, was keen to sell the magazine last year, but decided to cut costs instead and rely less on advertising revenue.