Paytm CEO declares ChatGPT as the 'new consultant in town' amid Mckinsey layoffs

The rise of AI in consulting is not isolated to McKinsey.

Vijay Shekhar Sharma, the founder and CEO of Paytm, took to X (formerly Twitter) to comment on the evolving landscape of the consulting industry. Sharing a snippet from a Financial Times article detailing significant layoffs at McKinsey & Company, Sharma remarked, "There is a new consultant in town. The answer is: ChatGPT."

The Financial Times article revealed that over the past 18 months, McKinsey & Company reduced its workforce by more than 10%, eliminating over 5,000 positions from a peak of over 45,000 employees at the end of 2023. This marked one of the most substantial layoffs in the firm's nearly century-long history.

The cuts were attributed to a downturn in the consulting market following a pandemic-driven boom and coincided with a $1.6 billion legal settlement related to McKinsey's work with opioid manufacturers. The layoffs included a 2023 restructuring that dismissed 1,400 back-office workers and 400 tech specialists, alongside intensified performance reviews that pressured underperforming consultants to resign.

There is a new consultant in town. The answer is : ChatGPT pic.twitter.com/Tp4zjGi9Lv Vijay Shekhar Sharma (@vijayshekhar) May 28, 2025

Sharma's post underscores the growing influence of artificial intelligence tools like ChatGPT in the consulting sector. The integration of generative AI into business operations is prompting firms to reassess traditional consulting models. A McKinsey report highlighted that generative AI could automate up to 30% of work hours by 2030, accelerating the shift towards AI-driven solutions in various industries.

The rise of AI in consulting is not isolated to McKinsey. Other major 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, attributing the move to the adoption of AI tools that enhance efficiency and reduce the need for certain roles.