UK financial services firm EY to cut 3,000 jobs in US
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The job cuts at EY follow recent downsizing at other large accounting firms and consultancies.
PHOTO: REUTERS
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New York – British financial services giant EY, which last week dropped a plan to split its audit and advisory units, said on Monday it will cut 3,000 jobs in the United States, citing overcapacity at the firm.
“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, representing less than 5 per cent of our US workforce,” said an EY spokesman.
The move comes after EY stopped its planned reorganisation, called “Project Everest”, which aimed to accelerate growth and avoid conflicts of interest. The change was opposed by the firm’s US branch.
The job cuts “are part of the ongoing management of our business and not a result of the recently concluded strategic review”, the spokesman said.
The job cuts follow recent downsizing at other large accounting firms and consultancies. Tech consultancy Accenture announced in March that it was cutting 19,000 jobs, or 2.5 per cent of its workforce. KPMG and McKinsey have also announced job cuts recently. AFP
