EY to slash over 100 US jobs as part of ‘long-term’ transformation for Big Four firm
EY is cutting over a hundred more jobs in the US as the firm in the midst of “transforming” its business, following split fail earlier this year.
The Wall Street Journal (WSJ) reported that the job cuts are largely concentrated on the advisory side of its US operations. It is reported that 10 per cent of partners in consulting and around four per cent in strategy and transactions are set to lose their jobs.
According to the WSJ, this means more than 100 partners in consulting and over 30 partners in strategy and transactions at both junior and senior levels will be cut from the business.
This news came after an announcement in April that the Big Four firm was dropping 3,000 jobs in the US arm of the business, which represented less than 5 per cent of its US workforce.
The fallout has come off the back of EY ditching its plans in early April to split its audit and consulting businesses. The plan was known as ‘Project Everest’ but it was dropped following opposition from its US unit.
Speaking to Morning Wire, a spokesperson for EY said “as part of our long-term planning, EY has been transforming our business to focus on the areas where our clients have the greatest needs.”
They noted that this meant the firm had to make the “decision to separate a limited number of people from the firm”. The spokesperson also highlighted that in certain areas of its US business, it “defer start dates for some new hires”
“These decisions have been thoughtfully made with respect and fairness for all of our people and the future of our business. EY will offer comprehensive support to those who are affected,” the spokesperson added.
The cuts are not unique to the US, the firm’s UK bosses told staff it will cut more than five per cent of its near financial services consulting team in August. This meant that around 150 jobs were set to be cut in teams that advise on business transformation.