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EY initiates unprecedented partner layoffs amidst industry slowdown, ETHRWorld


hr.economictimes.indiatimes.com | www.ETHRWorld.com

<p>  The firm has deferred start dates for new hires and is offering comprehensive support to affected individuals. Other major firms like KPMG and Deloitte have also downsized their workforce</p>
The firm has deferred start dates for new hires and is offering comprehensive support to affected individuals. Other major firms like KPMG and Deloitte have also downsized their workforce

Ernst & Young (EY) is undertaking a significant round of partner layoffs, affecting various U.S. business segments, as the global accounting giant contends with diminishing demand for specific services and strives to streamline operations following the abandonment of its plan to split the firm, reported Wall Street Journal.

The extensive partner cuts are primarily concentrated in the advisory sector of the U.S. operation, impacting over 10% of partners in consulting and approximately 4% in strategy and transactions. However, the audit and tax arms are not immune, as sources reveal that more than 100 partners in consulting and over 30 partners in strategy and transactions, spanning both junior and senior levels, are affected.

Notifications to the impacted partners began last week and are expected to continue this week. While annual partner cuts are not uncommon due to performance evaluations, the current reductions surpass the typical scale. This move follows EY’s decision in April to lay off 3,000 U.S. employees, constituting less than 5% of its U.S. workforce.

EY, like other accounting and consulting firms, is grappling with a slowdown in revenue growth, prompting several firms to downsize their workforce. The surge in hiring during the…


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