Job cuts at McKinsey and KPMG this month are the first concrete sign that a boom in spending on consultants that started during the pandemic might be over, as clients move to reduce costs and battle inflation.
Companies short on staff and desperate to make their operations digital after the pandemic paid record amounts to consultants in the past two years. Demand for advice on tech, dealmaking and implementing net zero pledges fuelled a boom in consultants’ profits and ignited a pay and recruitment war.
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