AI Layoffs Threaten Jobs as Consulting Salaries Soar

AI Layoffs and $200K Consulting Salaries: A Growing Divide

AI-driven layoffs are on the rise, with thousands of workers across industries facing job losses due to automation. At the same time, consulting giants McKinsey & Company and Bain & Company have announced they’re raising starting salaries for new hires to $200,000. For everyday workers—especially those in roles threatened by AI—this news lands like a punch to the gut. The gap between those benefiting from AI and those left behind is growing, and it’s hitting regular families, students, and workers the hardest.

What Happened

On October 28, 2026, Firstpost reported that McKinsey and Bain, two of the world’s largest consulting firms, will now offer $200,000 starting salaries to new consultants. This comes as companies across the U.S. and Europe continue to lay off workers due to advances in AI. According to the AI layoffs tracker, tens of thousands of jobs in sectors like finance, customer service, and even journalism have been eliminated in 2026 alone.

While consulting firms are flush with cash from advising corporations on how to implement AI and cut costs, workers in more routine or repetitive jobs are bearing the brunt of automation. The consulting sector’s salary hikes are meant to attract top graduates from elite universities, many of whom will be tasked with designing or recommending the very systems that lead to layoffs elsewhere. This creates a stark divide: a small group of highly paid professionals, and a much larger group of workers whose jobs are at risk.

Meanwhile, there’s little in the way of new regulation to slow this trend. The EU’s AI Act, passed in 2024, focuses mainly on safety and transparency, not on protecting jobs. In the U.S., the White House’s 2023 Executive Order on AI only encourages companies to "consider" the impact on workers, with no binding requirements.

How This Affects Everyday People

For most people, the news isn’t about six-figure salaries—it’s about job security and the ability to provide for their families. Here’s what the divide means on the ground:

• Workers in vulnerable roles: If you work in data entry, customer support, retail, or logistics, your job is at high risk of automation. The impact of AI on jobs is already being felt in call centers, warehouses, and even some healthcare roles.
• Families and communities: When jobs disappear, it’s not just the workers who suffer. Local economies take a hit, schools lose funding, and social services are stretched thin. In towns where a single employer automates away hundreds of jobs, the effects ripple out to everyone.
• Students and young workers: The path to a "safe" career is narrowing. Unless you have a degree from a top university and the connections to land a consulting or tech job, the future looks increasingly uncertain. Many students are left wondering if their chosen field will even exist in five years.
• Parents: Navigating what skills to encourage in their kids is harder than ever. Should you steer your child toward coding, or will AI soon write its own code? The lack of clear guidance adds to family stress.

For most, the message is clear: unless you’re designing or selling AI, you’re more likely to be replaced by it than to benefit from it.

The Bigger Picture

The consulting salary hikes are just one sign of a broader trend: AI is creating winners and losers, and the gap between them is widening. In 2026, Amazon announced another round of warehouse automation, cutting 10,000 jobs nationwide. Meanwhile, OpenAI and Google continue to rake in billions by licensing their AI tools to companies eager to cut labor costs.

Some governments are starting to notice. In France, a proposed "robot tax" would require companies to pay into a fund when they replace workers with AI, but the measure faces heavy opposition from business groups. In the U.S., the Protecting American Jobs Act stalled in Congress, with critics saying it doesn’t go far enough to shield workers from automation.

Despite these efforts, there’s little to stop the march of automation. The consulting firms advising on AI strategy are among the few reaping direct financial rewards, while the majority of workers face greater job insecurity. For a deeper look at which roles are at risk, see our guide on whether AI will replace your job.

What You Can Do

• Stay informed about your job’s risk level. Use resources like our AI job risk guide to see if your role is vulnerable and start planning accordingly.
• Learn new skills that AI can’t easily replace. Focus on roles that require human judgment, creativity, or physical presence. Our AI-proof jobs list is a good place to start.
• Talk to your kids and students about the future of work. Encourage curiosity and adaptability, not just STEM skills. Emphasize problem-solving, empathy, and communication—areas where humans still excel.
• Get involved in local advocacy. Support policies that protect workers, such as job retraining programs or proposals for a "robot tax." Attend town halls and make your voice heard.
• Don’t fall for the hype. Remember that not all tech jobs are safe, and not every new AI tool is a goldmine. Be skeptical of promises that automation will create more jobs than it destroys—so far, the numbers don’t back that up.

The Bottom Line

The news that McKinsey and Bain are offering $200,000 starting salaries while AI layoffs sweep through other sectors is a wake-up call. The benefits of automation are flowing to a select few, while the risks are spread across millions of everyday workers and families. As AI continues to reshape the job market, staying informed, adaptable, and engaged is more important than ever. The future of work is being written now—and it’s up to all of us to demand a fairer deal.