'MBA is costliest course for teaching nothing': Consultant drops a brutal truth bomb

A senior manager at a consultancy firm, Manab Majumdar, dropped a provocative reality check about MBAs, stirring significant debate on LinkedIn: "MBA is the costliest course for teaching nothing. Yes, you can learn every subject taught in an MBA at 1/100 cost."

The blunt assessment arrives amidst a rapidly shifting job market where traditional assumptions about MBA programs are being dismantled. 

Majumdar didn't stop there, adding, "Post MBA, you don't become the CXO of the company. Bollywood ka movie dekh k MBA wala fantasy jo hain, wo galat hain."

Indeed, dreams of instant executive roles after graduation are increasingly proving unrealistic. CA Nitin Kaushik (@Finance_Bareek) on X echoed this sentiment sharply: "𝐓𝐡𝐞 𝐄𝐝𝐮𝐜𝐚𝐭𝐢𝐨𝐧 𝐃𝐢𝐥𝐞𝐦𝐦𝐚: MBA fees ₹25,00,000, ROI: Uncertain. Research before enrolling."

Even premier institutions like Harvard aren't insulated. The Wall Street Journal recently highlighted an unsettling statistic: 23% of Harvard Business School’s 2024 graduates were unemployed three months after graduation, a dramatic increase from 10% just two years earlier. Stanford and Wharton, too, have reported similar declines, with unemployment nearing 20%.

Globally, the picture isn't brighter. According to the International Labour Organization, youth unemployment stood at an alarming 13% in 2023, affecting approximately 65 million young individuals worldwide.

Why are MBAs struggling despite attractive median starting salaries exceeding $175,000? The answer lies partly in evolving corporate strategies. 

Firms like McKinsey, BCG, Google, and Amazon have sharply curtailed MBA hiring amid economic downturns and layoffs. Simultaneously, the corporate world is shifting toward smaller, specialized teams, boosted by the rise of AI and automation, making generalized MBA skills less relevant.

Kristen Fitzpatrick, head of career development at Harvard Business School, starkly observes, "Going to Harvard is not going to be a differentiator." Instead, specialized technical skills are increasingly coveted.

In response, business schools are pivoting rapidly. Harvard is now experimenting with AI-powered tools designed to match students to jobs and suggest tailored courses to bridge skills gaps.