McKinsey offers employees a paid zero-hour workweek as consulting slows

What do consultants even do?… Not much lately. McKinsey, the consulting giant and self-proclaimed “#1 CEO Factory,” is reportedly giving hundreds of senior UK staffers the option to forgo job duties and spend the next nine months finding another gig (all while still getting paid). A similar offer has been made to US managers. For many, it may seem like a dream scenario. But consultants — who often get paid to plan corporate layoffs — are now being cut themselves:

• PowerlessPoint: McKinsey rivals like Deloitte, EY, Bain, and Boston Consulting Group have trimmed roles and offered buyouts as consulting demand sags. Some new recruits not yet assigned to projects say they spend their workdays bingeing Netflix.

• Uno reverse: Consulting thrived during the pandemic as companies sought outside help to fix supply snags and figure out RTO. Tech’s mass layoffs (many orchestrated by consultants) also boosted consulting headcounts.

• Chillin’ out: Before McKinsey’s 1.4K layoffs last year, the firm’s headcount had spiked ~70% to 47K in just five years. Now peers including Accenture, Deloitte, EY, KPMG, and PwC have laid off nearly 30K workers.

Consulting may need a consultant… 86% of US clients plan to reduce their consulting budgets this year as companies cut costs (without consultants’ help). After the “year of efficiency,” consultants now seem to be more of a nice-to-have than a need. And high interest rates have slowed consultant-friendly markets like M&A. Still, the industry isn’t going under anytime soon: McKinsey generated a record $16B in revenue last year as companies brought on outsiders to advise on AI strategies.