ATfter a short stay in the stratosphere, the world of consultants returns to earth. Like the high-tech giants, McKinsey, BCG, Accenture and other Excel spreadsheet and PowerPoint presentation artists are revising their ambitions downward. KPMG thus announced internally, on Monday June 26, that it was going to increase its job reduction plan in the United States, already unveiled in February, to part with almost 2,000 employees, or 5% of its American workforce. . Since the beginning of the year, almost all the major audit and consultancy companies have presented staff reduction programs. The firm EY will also reduce its own by 5%, the giant Accenture should cut nearly 19,000 jobs and McKinsey 2,000 jobs.
As KPMG indicates in an internal e-mail, revealed in particular by the FinancialTimes, the situation suddenly reversed. According to the research firm Source Global, three-quarters of companies have scaled back or canceled their plans for consultant intervention, while negotiating a reduction in fees. As a result, the latter, accustomed to running out of hands to supply the demand, suddenly find themselves with staff without customers. In this profession where the departure rate is very high, it has suddenly calmed down.
Never-ending questions
It must be said that the Covid-19 years have been exceptional for the consulting world, especially the restart of 2021, with clients in shortage of personnel and wishing to accelerate their digital shift and their plans to decarbonize activities. Bread blessed for the big heads of consulting. As the specialized site Consultor recalls, McKinsey’s turnover increased from 10 billion dollars (9.13 billion euros) in 2018 to 15 billion in 2022, and its workforce jumped by 34,000 employees in 2020. to nearly 45,000 in 2022. All have experienced the same kind of inflation, resulting in sky-high starting salaries approaching $200,000 for a young high school graduate.
Nevertheless, it is not yet the crisis. Source Global has calculated that the turnover of the profession could still increase by more than 7% in 2023. And some companies are calling them to help them with restructuring plans. Consultor tells us that Carrefour has used the services of McKinsey and BCG extensively for its workforce reduction program announced this week.
Behind this kind of mise-en-abîme come the eternal questions about the usefulness of consultants in the face of the very substantial costs of their services. The questions asked by French politicians on the occasion of the Senate report on the use of consultants in public decision-making have shown the sensitivity of the subject. The executives only moderately like to see armies of young Turks arriving claiming to teach them the trade. External advisers have reassured kings since antiquity and stirred up the legitimate jealousy of the faithful.