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Big Four accounting firm Ernst & Young is cutting jobs across its US arms and delaying start dates for certain new hires, per an exclusive Wall Street Journal report. The move arrives as the consulting industry reckons with a broader, industry-wide downturn.
It’s not the first round of layoffs for EY this year. In April, the firm laid off under 5% of its US workforce, or 3,000 employees, primarily in consulting, after evaluating “current economic conditions,” the Journal reported in April.
EY started telling employees last week about the layoffs, and will continue talking to them this week as well, according to the Journal. “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,” an EY spokesperson told the paper.
The layoffs will impact more than a tenth of (around 100) consulting partners and 4% of, or about 30, strategy and transactions partners. They’ll also affect the firm’s audit and tax teams, per sources that spoke to the Journal.
“These decisions have been thoughtfully made with respect and fairness for all of our people and the future of our business,” the spokesperson said. “EY will offer comprehensive support to those who are affected.”
EY isn't the only accounting firm that's trimmed headcount this year. KPMG cut 5% of its US employees this June, citing “economic headwinds, coupled with historically low attrition.” And in April, Deloitte laid off 1,200 employees, or 1.5% of its US-based employees.