In the most recent round of layoffs, Ernst and Young (EY), a global accounting giant, is letting go of dozens of partners across all its US businesses, primarily in the advisory sector. This decision aims to cut costs due to decreased demand for specific services. The move follows EY’s decision to abandon its plan to split the company.
The layoffs impact more than 10 per cent of partners in consulting and nearly four per cent in strategy and transactions, affecting audit and tax arms as well, as per media reports.
Over 100 partners in consulting and over 30 partners in strategy and transactions, spanning both junior and senior levels, will be affected by the layoffs, with notifications having begun last week and expected to continue this week.
While partner cuts are not unusual during performance evaluations, this round exceeds the typical number. In April of this year, EY also laid off 3,000 US employees, constituting around five per cent of its total workforce in the country.
The industry saw aggressive hiring during the pandemic, particularly in consulting areas such as corporate strategy and digital transformation. The recent layoffs at EY, impacting a limited number of individuals, were made with consideration for the company’s future and the well-being of its employees.
The company plans to provide comprehensive support to those affected. EY has been undergoing long-term transformations to more effectively align with client needs.
