“Ernst & Young cuts 3,000 jobs in the United States” | Economy
Accounting and consulting firm Ernst & Young (EY) has decided to cut nearly 3,000 jobs in the United States. As reported by the Financial Times. According to the Business Journal, this mainly concerns consulting functions due to “excess capacity”. The number of jobs corresponds to 5 percent of the total labor force in the United States.
“After assessing the impact of current economic conditions, strong employee retention and excess capacity in parts of our business, we have made the difficult business decision to lay off approximately 3,000 US employees,” an EY spokesperson told the Financial Times.
EY previously had plans to separate its due diligence activities from the advisory division. That plan, called Project Everest, involved separating advisory activities and much of the tax practice into an independent listed company. However, E&Y announced last week that it was abandoning this after the partners were unable to agree on the compensation and resources needed to staff the remaining audit practices.
An EY spokesperson confirmed to the Business Journal that the jobs to be cut are “part of the ongoing management of our company” and “not a result of the recently concluded strategic review, known as Project Everest.”
EY is also active in our country and is one of the “Big Four” accounting and consulting firms, along with KPMG, PwC and Deloitte.
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