Paytm’s Vijay Shekhar Sharma has sparked debate after publicly commenting on McKinsey & Company’s recent layoffs, which saw the consulting giant reduce its workforce by over 5,000 employees in the past 18 months.
Vijay’s remarks, posted on X (formerly Twitter), suggested that artificial intelligence (AI) tools like ChatGPT are replacing traditional consultants, reshaping the industry’s landscape.
In response, McKinsey clarified that the workforce reduction was part of natural attrition and performance-based transitions, rather than large-scale job cuts.
Workforce Reduction at McKinsey
McKinsey & Company, one of the world’s leading management consulting firms, has undergone significant restructuring since 2023.
The firm’s headcount, which stood at 45,000 employees at the end of 2023, has now dropped to 40,000.
The layoffs were driven by multiple factors, including:
- A downturn in the consulting market following a pandemic-driven boom.
- A $1.6 billion legal settlement related to McKinsey’s work with opioid manufacturers.
- A 2023 restructuring that dismissed 1,400 back-office workers and 400 tech specialists.
- Intensified performance reviews, pressuring underperforming consultants to resign.
Paytm CEO Vijay Shekhar Sharma’s Criticism
Vijay, the founder and CEO of Paytm, took to social media to comment on McKinsey’s layoffs.
Sharing a snippet from a Financial Times article, he wrote, “There is a new consultant in town. The answer is: ChatGPT.”
His statement implied that AI-driven solutions are increasingly replacing traditional consulting roles, a trend that has been gaining momentum across industries.
Vijay’s remarks align with broader concerns about AI’s impact on white-collar professions, particularly in management consulting, which has historically been resistant to automation.
His post quickly gained traction, with many debating whether AI-powered tools like ChatGPT could disrupt traditional consulting models.
McKinsey Layoffs: Company’s Response
Following Vijay’s comments, McKinsey issued a formal clarification, stating that its workforce reduction was not a result of mass layoffs.
Instead, the firm attributed the decline to natural attrition and performance-based transitions, which are part of its standard workforce planning process.
Despite McKinsey’s explanation, the situation highlights the growing pressure on consulting firms to evolve.
As clients demand faster, technology-enabled insights, firms are reassessing their talent models and operational structures to stay competitive.
AI’s Growing Influence in Consulting
Vijay’s remarks reflect a broader industry trend where AI-driven solutions are reshaping traditional business models.
A McKinsey report recently highlighted that generative AI could automate up to 30% of work hours by 2030, accelerating the shift toward AI-powered consulting.
Other consulting firms, such as PwC, have also embraced AI technologies.
In May 2025, PwC—identified as ChatGPT’s largest enterprise user—announced the reduction of 1,500 jobs, citing AI adoption as a key driver of efficiency.
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