Ernst & Young’s US branch has recently revealed plans to lay off 5 percent of its workforce, resulting in the loss of approximately 3,000 jobs. The company cited various reasons for its decision, including the current economic climate, strong employee retention rates, and an overcapacity in some areas of the business.
This announcement came shortly after EY’s proposed plan to divide its audit and consulting units, a move intended to address regulatory concerns regarding potential conflicts of interest, was halted due to objections from its US Executive Committee.
EY’s decision to lay off employees is not an isolated occurrence. Other accounting firms, including KPMG, have reportedly undertaken similar measures to address the impact of the Federal Reserve’s quantitative tightening on the economy following the pandemic.
Though Deloitte and PricewaterhouseCoopers are also members of the ‘Big Four’ accounting firms alongside EY, it is EY that has chosen to reduce its workforce.
The job cuts at EY are primarily expected to affect the consulting business. The Financial Times first reported the news of the layoffs. The decision is expected to cause widespread concern for those who rely on EY’s services and for the affected employees who will face the prospect of unemployment.
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