Ernst & Young's U.S. branch has announced plans to reduce its workforce by around 3,000, representing less than 5% of its total workforce. The decision comes as the company reviews the current economic climate, employee retention rates, and excess capacity in some business regions. The company stated that it had taken this decision and would offer comprehensive support to those affected by the cuts.
The move follows EY's recent decision to abandon its global plan to split its audit and consulting units due to objections from its U.S. executive committee. However, EY US clarified that the decision to reduce its workforce was not part of the recently concluded strategic review, Project Everest, but instead an ongoing part of its business management.
EY's decision to cut jobs in the U.S. is not unique among the Big Four accounting firms. The industry has faced headwinds recently due to increased regulatory scrutiny, pricing pressure, and changing client demands. In February, KPMG also reportedly let go of about 700 employees from its U.S. advisory practice, which amounts to roughly 2% of the company's total workforce in the country.
Despite the job cuts, EY US stated that it remains focused on its people, delivers innovative and forward-thinking approaches to its clients, and maintains an industry-leading quality commitment. The company has a strong reputation for excellence and will continue to adapt to the changing needs of its clients while maintaining its position as a leader in the industry.
The announcement has shocked many employees, who have expressed their disappointment at the decision. However, EY US has assured its staff that it will provide comprehensive support to those affected, including career counseling, training, and other resources to help them transition to new opportunities. The company has a solid commitment to its employees and will work to ensure that they are treated with respect and consideration during this difficult time.
