- McKinsey & Company cutting about 10% of its workforce is not just an isolated event, but reflects an irreversible shift in the entire consulting industry in the age of AI.
- In the past, McKinsey’s advantage came from the era of information scarcity, when market analysis required large teams working for months to synthesize data.
- The digital era democratized data, forcing McKinsey to expand into analytics and technology-driven transformation; but the AI era is exerting even greater pressure.
- AI not only reduces information asymmetry but also “flattens” analytical and recommendation capabilities – the core value foundation of strategic consulting.
- In the next 5 years, nearly 300 million “white-collar” jobs globally will be impacted; about 100 million are at risk of obsolescence, especially high-cognitive and already digitized roles.
- Consulting sits right at the center of this disrupted zone, making “analytical power” no longer sufficient to create an advantage.
- The value focus is shifting from strategy to technology-based execution, where strategy and execution occur simultaneously and continuously.
- Implementation-focused firms like Accenture, Deloitte, and EY are growing at 11%–12% per year, while the MBB group (McKinsey, BCG, Bain) is only around 5%–6%.
- Clients want partners who can connect strategy, technology, and operations, while deploying change at scale.
- In the AI era, strategy moves from “problem-solving” to “meaning-making,” and humans move from being “in the loop” to “above the loop.”
- The likely winners are firms strong in technology execution and industry experts with deep contextual understanding.
📌 The 10% layoff wave at McKinsey shows that the elite analysis-based consulting model is reaching its limit in the AI era. AI not only reduces information asymmetry but also “flattens” analytical and recommendation capabilities – the core value foundation of strategic consulting. The value focus is shifting from strategy to technology-based execution, where strategy and execution occur simultaneously and continuously.
