Ernst & Young to cut 3,000 US jobs due to overcapacity

Ernst & Young, one of the four leading players in the accounting industry, has announced that it will cut 3,000 jobs in the US, primarily in its consulting division. This comes just days after the company called off its plan to split its auditing and consulting divisions, which was meant to address conflicts of interest issues raised by regulators.

London-based EY stated that the job cuts were unrelated to the failed division plan but were made “after assessing the impact of current economic conditions, strong employee retention rates, and overcapacity in parts of our firm.” The move comes as many corporations in the US are preparing for a possible
economic downturn.

The firm promised “comprehensive support” to those affected and mentioned that the cuts would affect around 5% of its US workforce. The decision to cut jobs at EY follows a similar move by Accenture and McKinsey, which announced reductions of 2.5% and 3% of their staff, respectively.

Although EY has stated that there are no similar plans in the UK, The Financial Times has reported that cost cuts are being planned in the country as a result of the division plan’s failure.

Re-reported from the story originally published in https://www.bbc.com/