Quick Summary
McKinsey’s significant workforce reduction signals a fundamental transformation in management consulting driven by artificial intelligence and changing client expectations.
Key Points
- McKinsey laid off 3,000 employees, representing 10% of its workforce
- Revenue growth dropped to 4% in 2023, down from double-digit post-COVID expansion
- AI technologies are rapidly replacing traditional consulting workflows
- Organisations are demanding more outcome-focused solutions
Why It Matters
The consulting industry is experiencing a structural collapse, with AI and automation fundamentally challenging traditional business models. Companies face significant risks of becoming obsolete without rapid adaptation, including potential revenue erosion, talent displacement, and competitive disadvantage. The emerging landscape demands professionals who can strategically integrate AI with domain expertise, creating new roles centred on innovation and practical implementation.
