McKinsey & Company Is McKinsey & Company layoff the canary in the coal mine...are we beginning to see the writing on the wall appear for consulting?

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Yes, this new technology will put consultants out of work! Or that’s what my bro told me when Microsoft invented Excel and PowerPoint and we didn’t need to manually cut out charts from coloured films anymore.

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Yes, maybe it is different this time, but I doubt it.

If AI ends up solving all of humanities problems faster than we can invent new ones, I stand contracted.

But if that doesn’t happen, there will always be rich people with lots of money and complicated problems. And consultants will come up with smart ways to solve the problems and separate them from their money.

Yes. Our way of working will look vastly different than it does now. But the way we work today also looks fundamentally different from what Martin Bower, Bruce Henderson and Bill Bain did.

my firm will forever be known for the hottest takes

funnyuplifting

no deloitte is well known to be mbb rejects

The layoff happened over the past several years - it is not a new round of layoffs

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It’s a bit early to tell. Will firms be more productive with less people moving forward? Absolutely. But all of the AI hype is quietly not addressing the massive elephant in the room. And that is energy. Our current infrastructure cannot handle the amount of compute these models require. Big tech can throw all the money in wants to solving this problem through building nuclear power plants, but even so, you can’t just “build a power plant” and plug it in. It’s a lot more complicated than that. While I do believe we will reach AGI in the next few years, it currently, and will not be possible to scale it the way these firms are promising. AGI will remain in research labs and possibly scaled through various companies that are willing to pay for it. But there is a threshold. And until that bottleneck is solved, AI to the extent of replacing all humans is truly a pipe dream.

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Lol the energy bottleneck seems to be topic du jour

But it ignores the possibility of massive efficiency gains like that of deepseek

Also China is already building out their energy capacity. It'll be a bottleneck but more for the US

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McKinsey had more problems. Consulting as a trade is going nowhere anytime soon but some firms will likely perish or join bigger more profitable ones.

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