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First MBB reduced bonus. Now EY is laying off US partners. Is something up with consulting in general?

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Micheal_Scott

Grapevine

9 months ago

Sad to know that even senior leaders can be fired. I might be at risk too
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Kamlesh

Stealth

9 months ago

Dange ho jayenge, aisi baatein mat karo
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Demon

Stealth

9 months ago

Senior leaders, if their work can be automated or become obsolete, are much more probable targets of layoffs. Firing one senior person saves salary of 10s or even 100 freshers and most people anyway don't like upper leadership so hardly creates any negative image.
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Corpdaaku

Student

9 months ago

Deals are not happening as it used to. Macros uncertainty is keeping clients on budget tightening. The pre-sales consultants are having hard time to convince the clients
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Kamlesh

Stealth

9 months ago

Also, pre sales is getting automated using ai. No need to have as many humans to manage bots. Same trend playing out in trading firms.
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Indusplateau

Stealth

9 months ago

McKinsey has huge software and analytics business. Shows that consulting is not the prime business. It's just a marketing front. Kitna bhi gyna pel do. At the end, consultant relies on analyst running SQL queries.
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Observer

Entrepreneur

9 months ago

And analyst relies on data entered in data bases.. There is no single own it all in modern industry.
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Careermode

LivSpace

9 months ago

The Consulting business isn’t a marketing front. It literally does no marketing for them. The only little marketing McKinsey gets is from their reports here and there. I think you’re referring to the Knowledge Centre when you say SQL queries. Sure that is technical, but it’s always sold as a package to clients, not standalone. I think this is a very incorrect take. Unless you have an actual breakdown of revenue from consulting vs analytics
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DopeyWinery

Media.net

9 months ago

The title of that article is kinda misleading. "They laid off those partners because of the failed plan to split their accounting and consulting businesses and the $600 million loss they incurred from it" https://twitter.com/buyandholdcpa/status/1734609949588902011?t=N1reIXRvS5-ZJaa0Sf5csQ&s=19
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redWiper

Student

9 months ago

Well, it's most meritocratic for partners. You bring in business, you stay. No business = pls leave. The boom times meant a lot of business in tech industry, hence made sense to have many partners in tech practice. But now tech has rationalised significantly, meaning less business and hence not a high requirement for partners. Some partners could transition to other industries, others will be asked to leave
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MightyLazyGeekStar

Stealth

9 months ago

There is no free lunch in corporate
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Itachi777

Stealth

9 months ago

I did not know partners can be fired.
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BahadurBilla

Stealth

9 months ago

Macro + loss in brand value https://youtu.be/AiOUojVd6xQ?si=S3abVN_kKB5UgLu0
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MealyBloom18

Stealth

9 months ago

It's the economy
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Indusplateau

Stealth

9 months ago

Ladders and pyramid schemes have a limit
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HappyFeet92

Stealth

9 months ago

This is the expected lag effect
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Layoffs on

by Pana2008

Stealth

Consulting layoffs

Current recession giving ‘08 vibes to consulting companies in India: - Accenture Strategy considering layoffs - Deloitte (Consulting) considering layoffs - Mckinsey - already have done non-consulting layoffs - MBB - expected to push out joining dates for new hires by at least ~6 months (most likely new joiners who were expecting to join in July-Aug 23’ to join only starting Jan 24’) Slow pace of new projects, ramp down of existing big clients, massively over hiring in 2022 (key reason) has led to most people being on the bench. Wouldn’t be surprised if the ‘Up or Out’ model comes into action more aggressively for the upcoming appraisal review cycle(s). Brace for impact! (all unconfirmed, heard through ‘grapevine’)

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Misc on

by Internetexplorer

Swiggy

Bain adjusts its bonus compensation payout

While actual bonus amount hasn't changed, they've adjusted the % for high performers. 4 raters were previously paid 150% and 5 raters were paid 200% Not like I had motivation to work hard enough for a 4 anyway but now it's not even worth much lol

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Business Roles on

by Careermode

LivSpace

Delayed onboarding across consulting firms (MBB too)

It seems like the bear market effects are down upon consulting firms now too Got to know from multiple people that were joining top consulting firms that their onboarding is deferred by 6 months (across places like Bain, McK etc) Already enough existing employees aren’t on active cases, and so it seems like they’ve hired more than there is demand for cases, people who have actually been sitting on the bench for months If demand does not return, this could really stack up and lead to a problematic situation

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Business Roles on

by redWiper

Student

Rumours that McKinsey year end bonus cut by 50%, can anyone confirm?

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News Discussion on

by Mithimirchi

Student

What future does consulting holds, especially MBBs and alikes. Will they continue to squeeze or sort of reverse their recent downfall.

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Layoffs on

by Chacha_James_Bond

TCS

Layoff at EY GDS

Big layoff coming in EY GDS. People on bench has been hinted in today's townhall. Lot of people are on bench in EY GDS for many many months. Till December they were telling EY is recession proof, now all of sudden that only people on engagements need not to be worried.

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Layoffs on

by NoisyLook45

Acko

Layoffs at Bain India. At least 100+ people will be affected

Heard from people I know at Bain that they are laying off. This is mostly the first time an MBB is doing layoffs (earlier they would silently fire, or delay onboarding) A friend got impacted. Seems like this could be 10-15% of their consultants. Unprecedented.