One of the Big Four accounting firms, Ernst & Young (EY) will cut 3,000 Jobs or 5% nearly of its Workforce in the US due to ‘Overcapacity’.
The announcement follows less than a week after the unit’s objection torpedoed the global accounting giant’s plan to break up its audit and consulting units.
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The company took to separate approximately 3,000 US employees, representing less than five percent of the US workforce due to the following reasons:
- There has been an impact on current economic conditions.
- The company has a strong employee retention rate.
- Additionally, there has been overcapacity in parts of the firm.
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.
Earlier, KPMG was laying off nearly 700 people, or about 2 percent of its workforce in the United States. The actual reason for the layoff was that the company wanted to better align the workforce with current and anticipated demand in the market.
At the time of KPMG layoffs, there have been reports which suggested that like other Big Four firms — EY, Deloitte, and PricewaterhouseCoopers (PwC) KPMG has been struggling with the collapse in merger and acquisition activity which has had an adverse impact on its deal advisory business, and easing demand for IT and strategic consulting.
So far in 2023, there have been 793 layoffs at tech companies with 225,603 people impacted. In 2022, there were 1,557 layoffs at tech companies 243,318 people were impacted.
