EY Layoffs December 2023: EY, facing challenging economic conditions, is implementing significant partner level layoffs across its U.S. operations. The Big Four accounting firm's deeper round of partner cuts encompasses various business segments due to declining demand and cost-cutting efforts post a failed firm breakup plan.
According to a Wall street report, the layoffs, notably affecting the advisory side, include over 10% of consulting partners and about 4% in strategy and transactions. This would equate to more than 100 partners in consulting and over 30 in strategy and transactions, spanning both junior and senior roles.
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The report further said EY began notifying the impacted partners last week and intends to continue the process this week. These cuts exceed the typical annual reductions for underperforming partners. Earlier in April, EY reduced its U.S. workforce by 3,000 employees, constituting less than 5% of its total U.S. staff.
Accounting and consulting firms, grappling with slowed revenue growth, are restructuring their workforce. They significantly expanded their teams during the pandemic due to increased demand in consulting services, but the expected post-pandemic attrition did not materialize as anticipated.
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The shifts in demand for consulting services are more sensitive to economic changes compared to the relatively stable nature of the audit business line, influencing the overall industry trends. This has led to a more cyclical nature within the professional-services sector.
Similar restructuring measures have been observed in other major firms like KPMG, Deloitte, and McKinsey, all making workforce reductions in various segments across the year to adapt to the evolving economic landscape.