"The recent announcement by McKinsey & Company that it plans to cut roughly 10% of its workforce has sent ripples through the consulting world, reigniting debate about the future of the industry. This is not about one firm, one round of layoffs, or one business cycle. It signals an irreversible shift in how value is created in consulting. Having spent a significant part of my career at McKinsey, I saw it grow and flourish in an era when information was scarce."
"The existential threat in the AI age While the digital age reduced information asymmetry, the AI age goes further. It increasingly equalizes analytical and recommendation capabilities. Firms like McKinsey built a powerful competitive moat by hiring the best analytical minds from top universities-excelling at data synthesis, first-principles problem-solving, and translating insight into recommendations. In the AI age, however, that advantage is becoming commoditized."
McKinsey plans to cut roughly 10% of its workforce, indicating a fundamental change in consulting value creation. Consulting’s historical edge came from scarcity of information and elite analytical talent that synthesized market intelligence over months. The digital age democratized data and pushed firms toward advanced analytics and technology-enabled transformation. The AI age further equalizes analytical and recommendation capabilities, commoditizing previous advantages. Nearly 300 million white-collar jobs may be impacted globally over the next five years, with around 100 million at risk of obsolescence, placing consulting squarely within this zone of disruption.
Read at Fast Company
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