Here to answer your questions. A bit about me:
-Strategy& Senior Associate
-Graduated from M7 MBA (class of 2015/16)
I'd prefer not to give much more detail at this time about myself (e.g., where I'm based, etc). Headcount has shrank about 20% since I've joined (hint hint - and this is net of new hires), so it's easier to identify myself in a smaller firm.
What is the main reason I am doing this? This is mainly for potential hires, as I want to prevent careers from potentially being ruined. Yes, the layoff rumors were true. Around April / May, S& laid off a bunch of 1st year campus grads through no fault of their own. Partners couldn't sell, so people were cut.on billed utilization, so it's easier to cut 1st years, as their utilization metrics are lower than proven 2nd/3rd year resources.
However, this was not the traditional consulting "counseling out" process (vs. industry, where you can get fired whenever). Many of the affected grads had no indication they were underperforming (mainly because there were very few projects for them to perform on). Many were given 2 weeks notice. And some were cut with three days notice. Yes, three days notice. Whereas my/ATK/LEK/etc are given months to find a new gig should they be counseled out. These 1st year grads have bills. They have student loans. In case of MBA grads, some of them have families. Children to support. Many of these grads weren't even given a chance. Who will hire an unemployed strategy consultant with 0-1 projects under his/her belt? What do these people even put on their resumes? It is October and many of them are still unemployed. I am absolutely disgusted by the way the layoffs were handled - which I understand is a decision made by PwC leadership, not S&. My assumption is because PwC is an accounting firm, they put on their accounting glasses and said "S&, you have to have X many headcount gone by a certain date because the fiscal year rolls over", or something to that extent
Since this is an intro post, I don't want to get into too much detail here (but can do so depending on what questions you have), but think about the downstream effects of what this has in terms of the internal culture shift / incentives and behaviors from H1Bs / incentives and behaviors from US citizens / resentment from potential future clients / effect on the incoming talent pool / etc.
One positive I will say for now - any company who hires from S& will get someone (most likely with a Tier-1 pedigree) willing to work ridiculously, insanely hard. For starters, Booz already had somewhat of a sweatshop reputation, but now people are so scared of getting fired (perhaps again, through no fault of their own) that 3AM / 4AM nights are becoming more common than before. We don't protect weekends here either.
Heading to bed now (late night), but please post questions and I will answer when I wake up. Questions don't necessarily have to be about the layoffs. Integration with PwC, projects, staffing, etc questions are all welcome.