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McKinsey Plans to Eliminate About 2000 Jobs in One of Its Biggest Rounds of Cuts

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Re: McKinsey Plans to Eliminate About 2000 Jobs in One of Its Biggest Rounds of Cuts

#51

Post by viableSprocket1 »

These topics on HN (where I know the industry well) make me realize how stupid I must sound when I have strong opinions on things I have nothing but anecdotal experience with. It's humbling to realize that I must also say things that are on par with "can't chatGPT do their job" or "all they do is make slides".

In aggregate and over the long term (~100 years or so in the case of consulting), most services find a fair market value. If McK is a ~$15B company running at ~30-40% margins, it is likely delivering some value to someone who is willing to pay for it. That value may be overstated to people not paying for it, or they may not understand the value because they are not faced with the same challenges as the typical McK customer.

...and that's ok, they are not the intended market.

Re: McKinsey Plans to Eliminate About 2000 Jobs in One of Its Biggest Rounds of Cuts

#52

Post by hn_throwaway_99 »

epicureanideal wrote: post #43
hn_throwaway_99 wrote: post #30

Earlier quoted context omitted.

> Mass layoffs generally don’t follow strong management execution. I realize that's a common sentiment on HN, but it's not really among executive leadership in US businesses. Sure, nobody wants to do layoffs, but then you're essentially left with 2 choices: 1. Potentially underhire despite growing business opportunity. 2. Potentially overhire to take advantage of business opportunities that may not eventually come to…

Why not hire contractors or contract-to-hire for those bursty work needs? Or spin up a separate company and buy services from them?

> Why not hire contractors or contract-to-hire for those bursty work needs?

To start, it's not legal. If the people you are hiring are doing the same work as full time employees, with the same work structure, you're not supposed to hire them as contractors.

> Or spin up a separate company and buy services from them?

I mean, companies certainly do outsource to third parties for "bursty" needs, but if you think this is going to be an important core part of your business going forward, why would you go through the organizational complexity to spin up a new entity? How would you explain this to recruits? "Congrats, you've been hired by the slightly shittier version of us, and when layoffs come you'll be the first to get cut." I mean, companies do actually kinda do that, but it's very much a hierarchical system - anyone with the ability to get hired by "main company" is not going to take a position with "shitty clone".

Re: McKinsey Plans to Eliminate About 2000 Jobs in One of Its Biggest Rounds of Cuts

#53

Post by s0ph0n »

Is it possible that AI is the real reason for a lot of these layoffs? In anticipation and to force internal adoption of AI assisted workforce, they now have immediate need to replace the workforce they just laid off. Companies can invest in AI with the money that would have went to tens of thousands of salaries and benefit packages.

Re: McKinsey Plans to Eliminate About 2000 Jobs in One of Its Biggest Rounds of Cuts

#54

Post by anon291 »

viableSprocket1 wrote: post #51

These topics on HN (where I know the industry well) make me realize how stupid I must sound when I have strong opinions on things I have nothing but anecdotal experience with. It's humbling to realize that I must also say things that are on par with "can't chatGPT do their job" or "all they do is make slides". In aggregate and over the long term (~100 years or so in the case of consulting), most services find a fair…

I worked at bain..

The main purpose these companies provide is to rubber stamp decisions and claim that experts made them

Re: McKinsey Plans to Eliminate About 2000 Jobs in One of Its Biggest Rounds of Cuts

#55

Post by viableSprocket1 »

anon291 wrote: post #54
viableSprocket1 wrote: post #51

These topics on HN (where I know the industry well) make me realize how stupid I must sound when I have strong opinions on things I have nothing but anecdotal experience with. It's humbling to realize that I must also say things that are on par with "can't chatGPT do their job" or "all they do is make slides". In aggregate and over the long term (~100 years or so in the case of consulting), most services find a fair…

I worked at bain.. The main purpose these companies provide is to rubber stamp decisions and claim that experts made them

Not my experience over a decade or so, but sorry it was yours. Sounds awful.

Re: McKinsey Plans to Eliminate About 2000 Jobs in One of Its Biggest Rounds of Cuts

#56

Post by raincom »

spamizbad wrote: post #40
JCM9 wrote: post #13

McKinsey’s brand has taken a beating these last few years with the company going from scandal to scandal. The NY Times has been doing a whole string of stories on the firm’s questionable business practices and ethics. Funny though how it sounds like, per their own admission, McKinsey badly mismanaged running their own internal operation and woke up to realize they need mass layoffs. Sort of causes one to question how…

If you were competent at running businesses why would you be an associate at McKinsey when you could be a COO or VP or something?

Well, if you have an MBA from San Jose State, you will be hired as a low level analyst at Apple/Google/Netapp. However, if you get an MBA from Stanford GSB/Harvard BS, you can join as an associate at McKinsey/Bain/BCG, then jump to Apple/Google/Netapp as a VP/Senior Director of Strategy, thereby putting you in the elite class.

That's the difference, that's why there is so much competition to get into top three business schools. If one want to be a top level exec, go to a top three b-school, then jump laterally to companies.

Re: McKinsey Plans to Eliminate About 2000 Jobs in One of Its Biggest Rounds of Cuts

#57

Post by vhdI27 »

version_five wrote: post #16
kneebonian wrote: post #3

Honestly I'm now wondering how much of these "startegy/management consultants" jobs could be automated with AI. I mean from my understanding their primary work product is a slide deck.

Consultants make leadership feel good or look good, reduce cognitive load, provide cover for decisions, many other things along those lines, none of which are about a deck, which is incidental. They have to, as a firm, have the appearance of being vaunted and smart, otherwise it doesn't work, so the institutional credibility, regardless of whether one believes objectively in its merit, is important. I'm not saying it…

Bingo

Re: McKinsey Plans to Eliminate About 2000 Jobs in One of Its Biggest Rounds of Cuts

#58

Post by antasvara »

midoridensha wrote: post #39
JCM9 wrote: post #13

McKinsey’s brand has taken a beating these last few years with the company going from scandal to scandal. The NY Times has been doing a whole string of stories on the firm’s questionable business practices and ethics. Funny though how it sounds like, per their own admission, McKinsey badly mismanaged running their own internal operation and woke up to realize they need mass layoffs. Sort of causes one to question how…

>Most had never actually run a business or done the thing they were offering up advice on, and it showed. "Those who can, do. Those who can't, teach."

I've always found that saying disrespectful because it treats teaching like everyone's second choice. Many that "can" choose to teach. Currently licensed and practicing surgeons are the primary way that medical residents learn how to become effective surgeons. I would never trust somebody incapable of surgery with the education of a surgeon.

Re: McKinsey Plans to Eliminate About 2000 Jobs in One of Its Biggest Rounds of Cuts

#59

Post by theGnuMe »

antasvara wrote: post #58
midoridensha wrote: post #39

Earlier quoted context omitted.

>Most had never actually run a business or done the thing they were offering up advice on, and it showed. "Those who can, do. Those who can't, teach."

I've always found that saying disrespectful because it treats teaching like everyone's second choice. Many that "can" choose to teach. Currently licensed and practicing surgeons are the primary way that medical residents learn how to become effective surgeons. I would never trust somebody incapable of surgery with the education of a surgeon.

It takes real skill to teach.

Re: McKinsey Plans to Eliminate About 2000 Jobs in One of Its Biggest Rounds of Cuts

#60

Post by Zetice »

Sytten wrote: post #11
vuln wrote: post #9

Earlier quoted context omitted.

Let me tell you about the tens of thousands of open cyber security positions.

Ha yes, the famous cyber security experts that dont know what an HTTP request is but will run a nessus scan, charge 10k and tell you you are secure...

Hey, whatever gets me insurance, IDGAF if it's true.
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