Top Consultancies Freeze Starting Salaries as AI Threatens 'Pyramid' Model

Major consulting firms including McKinsey, Boston Consulting Group and Bain have frozen starting salaries for the third consecutive year as AI reshapes how these companies think about their traditional reliance on large cohorts of junior analysts. Job offers for 2026 show undergraduate packages holding steady at $135,000-$140,000 and MBA packages at $270,000-$285,000, according to Management Consulted. The Big Four -- Deloitte, EY, KPMG, and PwC -- haven't raised starting pay since 2022.

The industry's classic 'pyramid' structure, built on thousands of entry-level employees who crunch data and assemble PowerPoint decks, faces pressure as AI automates much of that work. Two senior executives at Big Four firms estimated that UK graduate recruitment would fall by about half in the coming year. PwC has already cut graduate hiring in 2025 and said in October it would miss a target to add 100,000 employees globally by 2026 -- a goal set five years ago before generative AI's rollout.

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