If you haven't heard the news yet, here it is: McKinsey just announced it's cutting 5,000 people. That's roughly 10% of its global workforce. BCG is only hiring in their AI unit, BCGX, which now has over 3,000 employees. Bain froze consultant salaries. The Big Four—Deloitte, PwC, EY, KPMG—are all adjusting headcount.
What's Actually Happening (The Real Numbers)
Let's be specific about what's going down, because there's a lot of noise and not a lot of clarity.
McKinsey's 5,000 Cut
McKinsey announced it's cutting 10% of its workforce. That's approximately 5,000 people. The firm went from over 45,000 employees in 2023 to about 40,000 today. This is one of the largest McKinsey job cuts in the firm's nearly 100-year history.
The firm's official statement? "We are aligning our capabilities with our clients' evolving priorities." Translation: they don't need as many people doing what consultants traditionally do.
But before you panic: they're not cutting everyone equally. The cuts are concentrated in support and administrative functions, and specialists in design, data engineering, and software. This tells you something important: McKinsey is still competing in some areas. It's just not competing on the "throw bodies at the problem" model anymore.
BCG's Selective Hiring
While McKinsey cuts, BCG is actually hiring—but only in specific areas. Their AI unit, BCGX, has ballooned to over 3,000 employees and is still growing. Meanwhile, traditional consulting at BCG is frozen.
This is the real signal: the firms are moving to AI-first models. They don't want generalists doing data analysis and building models. They want people who can work with AI, or people who can handle the client relationship while AI does the work.
Bain's Salary Freeze
Bain isn't making headlines like McKinsey, but they're definitely tightening. Consultant salaries are frozen, MBA start dates have been delayed, and the firm is being more selective about who they hire.
The Pattern Across All Firms
The pattern is consistent: mid-tier consulting is the most exposed. Junior consultants doing analysis, data work, and model-building are at risk. Partners and senior leaders are fine. Client-facing roles are secure. But the folks in the middle—the people doing the traditional consulting work—those are the ones being resized.
Why This Is Happening (And It's Not Just "Slowdown")
Everyone's saying "consulting is in a slowdown." That's true, but it misses the real driver: AI is automating the work consultants do.
McKinsey itself projects that AI could replace up to 30% of consulting jobs globally by 2030. Not "might." Could. And that's only by 2030. The timeline is accelerating.
Here's what's happening: Junior consultants spend 50% of their time on data analysis, scenario modeling, and building presentation decks. AI can now do all of that in hours, not days. So why would a consulting firm pay someone $150K a year to do work that an AI tool can do for $50/month?
They wouldn't. And they're not.
The Deal Flow Collapse
There's another driver that gets less attention: deal activity has slowed. M&A is down. Companies are tightening discretionary spending. 56% of companies now say they'll decrease their consulting spend in 2024-2025, compared to the majority historically saying they'd increase it.
Consulting firms expanded aggressively post-COVID when deals were flowing. Now the deal flow has dried up. They over-hired. Now they're adjusting.
The Over-Hiring Reality
In 2021, McKinsey, BCG, Bain, and Accenture posted 1,764 job openings in the UK. In 2023, that number dropped to 248. That's an 86% drop in job postings.
The firms hired assuming the boom would continue forever. It didn't. Now they're paying for that mistake with layoffs.
Why This Is Actually Your Advantage (Seriously)
This is the part nobody sees coming.
Companies Are Actively Hiring Ex-Consultants (Right Now)
When consulting firms lay people off, companies pounce. They know ex-consultants are trained, they understand complex problems, and they're proven operators. Right now, the market for ex-consultants is hot because:
Consulting firms can't absorb their people (they're cutting)
Companies know ex-consultants are hitting the market
Companies are hiring before the market floods with talent
This window is open right now. In 12-18 months, when another 20,000 consultants exit the industry, this advantage disappears. The supply will match demand. Hiring managers will be pickier. Salaries will compress.
Your Firm Can't Afford to Burn Bridges
When you leave a consulting firm that's cutting people, the dynamics change. They need references. They need alumni network goodwill. They can't afford to be hostile to people exiting.
This means: you have leverage. You can negotiate your exit package, your timeline, and your references in ways you wouldn't have had before.
Your Consulting Credential Still Matters (But Not for Long)
Right now, "McKinsey," "BCG," or "Bain" on your resume carries serious weight. Companies still see it as a signal of quality.
In 2-3 years, when consulting has contracted and the brand has been tarnished by layoffs and AI restructuring? That credential will be less powerful. The market will have adjusted. New entrants will be competing with you for the same roles.
The Market Won't Stay This Open
The exit market is open because it's chaotic. Once the consulting industry stabilizes (which it will), the hiring dynamic changes. Companies stop aggressively recruiting. The pool of ex-consultants gets larger (less scarcity). Your leverage shrinks.
The smart move is to move now, before the market normalizes.
What This Means for You (Specific Scenarios)
Let's be concrete. Depending on where you are, the stakes are different.
If You're Junior (Analyst or Senior Analyst)
The risk is real. Entry-level roles are being hit hardest by AI automation and consulting firm right-sizing. If you're planning to stay at your firm for 3-4 years to build credentials, that timeline just got riskier.
The smart play: exit now. You still have your firm's brand. You won't be caught in the next wave of cuts. You'll land a good corporate role (director-level), and you'll have the luxury of building depth in one place instead of rotating through six consulting engagements.
If You're Mid-Level (Manager or Senior Manager)
You're in the sweet spot. Companies want you. Your firm would rather you stay. You have leverage.
The play: if you've been thinking about exiting, this is your moment. Your timing is perfect. Firms are cutting people at the director/partner level before they cut you. You can negotiate hard on exit terms. You can get a great corporate role. You can negotiate remote flexibility because the market is competitive.
If You're Senior (Principal or Partner)
You're probably not reading this because you're not exiting. But if you are: your window is closing. Firms are cutting senior roles strategically. You have leverage, but you need to move fast.
The Three Paths Forward (And Which One Is Right)
Not everyone exits the same way. Depending on what you want, the path is different.
Path 1: Corporate Strategy (Most Common)
You move to a Fortune 500 company and do what you've been doing for a client, but for one company. Better work-life balance. Solid salary. Clear career progression.
This is the path that's most open right now. Companies are hiring. Your background is perfect. Timeline to offer: 8-12 weeks.
Path 2: VC or Growth Equity (Higher Risk, Higher Reward)
You move to an investment firm. You evaluate companies, work with founders, drive value creation. The base salary is lower than corporate strategy, but the upside (carry) is substantial.
This path is also open, but more selective. They want people with specific vertical expertise or operating experience. Not every consultant can do this path.
Path 3: Startup / Founding (Riskiest)
You join a startup as an early operator, or you start something yourself. This path is harder right now because deal flow is down and capital is tighter. But if you have a genuine idea and a network, it's possible.
Path 4: Freelance Consulting (Growing Fast)
You go independent. Freelance consulting is the fastest-growing exit for consultants, and platforms like Consultport and Catalant make it easier to get started.
The advantage right now: companies are more comfortable hiring freelancers for specific AI implementation projects than they've ever been.
How to Exit Before the Window Closes (Your Actual Timeline)
You don't need months. You need weeks.
Week 1-2: Get Clear
Figure out what you actually want (corporate strategy? VC? Freelance?)
Define your target role, company, industry
Understand your non-negotiables (remote? salary floor? mission-driven?)
Week 3-4: Optimize Your Materials
Rewrite your resume to translate consulting → industry
Update your LinkedIn to tell the story of why you're leaving and what you're looking for
Develop 3-4 short stories about your impact (the stories you'll tell in interviews)
Week 5+: Start Outreach
Apply to 5-10 targeted roles per week
Reach out to recruiters in your space
Use your network (alumni, clients, former colleagues)
Get in interviews within 3 weeks
Timeline: 8-12 Weeks from Clarity to Offer
This is real. We see it regularly. The consultants who move fast get multiple offers. The ones who hesitate get caught in the market shift.
The Window Is Closing (But It's Still Open)
Here's what happens in the next 12-18 months:
Consulting firms continue restructuring (more cuts)
The pool of available ex-consultants grows (supply increases)
Companies get pickier about hiring (competition increases)
Salaries compress (less negotiating room)
Your credential loses some of its luster (brand diminishes)
You don't have to move this week. But you should move in the next 1-3 months.
The firms are restructuring now. The market is still open. Your leverage is still high. The supply hasn't flooded yet.
If you wait until Q3 2025 or Q1 2026, the game has changed. The supply of ex-consultants is higher. The market is tighter. Your competition is fiercer. The window has closed.
What To Do Right Now
Option 1: You Know You Want to Leave Get clear on what you want. Optimize your materials. Start outreach. Move fast. You have the advantage.
Option 2: You're Not Sure Yet Don't wait to get clear. The consulting market is shifting under your feet. Getting clarity now is table stakes. Invest 2 weeks in a career sprint (we can help with this). Figure out what's next. Then move.
Option 3: You're Comfortable Where You Are That's fine. But understand what you're betting on: that your firm's restructuring won't touch you, that the market for ex-consultants will stay this open, that your credential won't lose value.
Those are all risky bets in 2025.
The Bottom Line
Consulting firms are right-sizing. Deal flow is down. AI is automating the work. The industry is contracting.
But for you? It's the best time to exit.
Companies are actively hiring ex-consultants. Your firm can't afford to burn bridges. Your credential still carries weight. The market is still open.
This window won't stay open forever. In 12-18 months, the game is different.
The question isn't whether you should leave. It's whether you'll leave while you still have leverage.
About author
San helps management consultants exit traditional consulting and land high-paying industry roles without burnout. Before building Consultant Exit, San spent a decade across Deloitte, Accenture, and Oracle, where he saw firsthand how unpredictable and unsustainable consulting careers can be. After failing his first startup and returning to consulting, he eventually built a systematic approach for exiting consulting the right way, which became the foundation of Consultant Exit. Today he and his team help consultants transition into roles across product, strategy, operations, and startups using a proven, data-driven reverse recruiting system
San Aung
Founder of Consultant Exit (Ex-Deloitte, Accenture, Oracle)
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