The American branch of Ernst & Young announced a 5% reduction in its workforce on Monday, less than a week after the unit’s objection torpedoed the global accounting giant’s plan to split its audit and consulting units.
The layoffs will affect some 3,000 company employees in the United States.
The decision was made after assessing the impact of current economic conditions, strong employee retention rates and “excess capacity” in some parts of the company, EY US said.
After months trying to attract partners, London-based Ernst & Young last week canceled a proposed review of its businesses that was intended to address regulatory concerns about potential conflicts of interest, after its US executive committee decided not ratify the plan.
American companies have been hit by a wave of layoffs after the currency tightening of the Federal Reserve it lifted the economy out of the exuberance of the pandemic era.
Among the “big four” audit firms, EY and KPMG They are laying off some of their staff. Deloitte and PricewaterhouseCoopers (PwC) are the other two.
The EY layoffs were first reported by the Financial Timeswhich said the cuts would mainly affect the consulting business
