Connect with us

Hi, what are you looking for?


Big four accounting firm EY to shed 3,000 US jobs to cut ‘overcapacity’

Less than a week after abandoning its plan to split itself into separate audit and consulting businesses, EY has told staff it will cut 3,000 jobs in the United States to eliminate “overcapacity”.

The redundancies, which will fall mainly on the consulting side of the firm, account for 5 per cent of its American workforce, although the percentage reductions will be higher in the affected businesses.

“After assessing the impact of current economic conditions, strong employee retention rates and overcapacity in parts of our firm, we have made the difficult business decision to separate approximately 3,000 US employees,” an EY spokesman told the Financial Times. “These actions are part of the ongoing management of our business and not a result of the recently concluded strategic review . . . Project Everest.”

EY’s plan was to separate the audit and consulting businesses to free both from conflicts of interest, allowing them to bid for work with companies that had been out of bounds. Its consultants had wanted to pitch for contracts with big technology companies but could not because their colleagues in audit signed off the firms’ accounts.

Carmine Di Sibio, global chairman of EY, who led the push for change, reckoned the consulting division could win $10 billion in extra fees if it were freed from the audit business. His plan was ditched after partners in America decided they would not back it.

Read more:
Big four accounting firm EY to shed 3,000 US jobs to cut ‘overcapacity’

You May Also Like


The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...


After taking a breather in the week before this one, the Indian equity markets resumed their up move. The headline index continued with its...


It was supposed to be a debacle. As the Second World War drew to a close, the nation’s leading economists feared that, once the...


Small businesses are bringing forward their finance applications in order to beat expected further interest rate rises, according to new research. Four-in-ten (44%) SME...

Dislaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023 | All Rights Reserved