EY US Just Fired 3000 People, Totally Not Related to Everest Falling Apart

Posted on by Adrienne Gonzalez
a screenshot of EY's metaverse space

Well we knew this was coming. Reuters:

Ernst & Young’s U.S. arm said on Monday it was shedding 5% of its workforce, less than a week after the unit’s objection torpedoed the global accounting giant’s plan to break up its audit and consulting units.

The layoffs will affect around 3,000 of the company’s U.S. employees.

The decision was taken after assessing the impact of current economic conditions, strong employee retention rates and “overcapacity” in parts of the company, EY U.S. said.

Not many more details out yet, we’ll keep you posted.

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Layoff Watch ’10: More Details on Ernst & Young

Thumbnail image for ey8ball.jpgWe have some additional details to share with you to supplement last Friday’s post on E&Y’s New Year layoffs.
While we were surprised at the timing, a source has indicated to us that IT Risk and Assurance layoffs have occurred at the firm each January since 2008. This is due to a serious drop off in utilization in the new year after high utilization in the fall months with the exception of especially in the audit heavy ITRA practices.
In regards to the audit practice, we spoke to another source over the weekend that told us that layoffs would not occur until after busy season but assured us that they are being planned.
Finally, in response to one comment asking about severance details, we were informed that the severance for those let go is a week’s pay for each year of service with a minimum of 4 weeks pay. This seems to be fairly standard (with a few variations) amongst the Big 4.
We’ve received word on some positions cut but we’re still awaiting further details so if you have any information or can provide more insight discuss below or get in touch and we’ll update them here.
UPDATE: A source has indicated that three IT Advisory managers in FSO in New York were included in the cuts.

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7 thoughts on “EY US Just Fired 3000 People, Totally Not Related to Everest Falling Apart”

  1. PCAOB 2022 Annual Report, page 5.
    This is a map of the PCAOB’s 10 US offices.
    One is in Dallas, TX.
    No Texas contacts?
    Really?

    1. No layoffs in assurance (includes accounting advisory) or tax. Guessing most people that read this site are in these groups.

      1. Don’t know how reliable this is but I saw Consulting, Strategy and Transactions, People Advisory Services, and Core Business Services were mentioned in the all hands call. Heard assurance is safe so that tracks.

  4. Have any EY insiders got any comments? I can’t believe EY staffers are happy with the situation.

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