EY to layoff hundreds of employees to improve profitability 

EY to layoff hundreds of employees to improve profitability 
The layoffs are subject to negotiations with an employee works council and were part of a restructuring to improve EY’s profitability in the country.

According to Reuters Reports, One of the largest professional services companies, Ernst & Young (EY Germany) is planning to cut 40 partners and 380 staff.

EY is looking forward to improving its profitability. The layoffs have affected the firm due to the Wirecard scandal in which the investors have witnessed billions of euros in losses.

Additionally, German companies are consulting the worker representatives when they are eliminating jobs for reasons. EY will also negotiate with the employee worker council while eliminating the jobs.

“The planned measures are intended to put EY Germany in the strongest possible position for future success,” the company said.

The 40 partners are exiting from the firms due to audit practice. The cuts account for about 5 percent of the roughly 800 equity and salaried partners in the German business.

EY currently employs nearly 365,000 globally. The company in India has over 87,000 people working in all member firms including global delivery centers. Enabled by data and technology, diverse EY teams in over 150 countries.

In 2023 January, 154 tech companies including Google reportedly laid off nearly 55,225 in just 21 days. Earlier in November Amazon announced that will be layoff 10,000 employees. However, the company further added 8,000 employees, and the total layoffs were announced as 18,000 employees.

Recently, IBM and SAP joined the cadre of IT giants planning to layoffs thousands of their employees this year.  Major Tech companies like Wipro, Microsoft, Salesforce, Cisco Systems Inc, and Microsoft have laid off more than 50,000 employees.

The tech sector announced 97,171 job cuts in 2022, versus 12,975 in the previous year, according to consulting firm Challenger, Gray & Christmas.


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