Accounting and advisory firm Ernst & Young (EY) is cutting about 3,000 jobs in the United States. That reports the “Financial Times”. According to Business, it’s mainly for consulting jobs because of “excess energy.” The number of jobs corresponds to 5 percent of the total workforce in the United States.
“After assessing the impact of current economic conditions, strong employee retention and excess capacity in parts of our company, we have made the difficult business decision to lay off approximately 3,000 US employees,” an EY spokesperson told Financial Services.
EY previously had plans to separate its due diligence business from its advisory division. Dubbed Project Everest, that plan branched out from advisory activities and a lot of tax practices into a stand-alone, publicly traded company. However, E&Y announced last week that it would not do so after the partners could not agree on compensation and resources to staff the remaining audit practices.
An EY spokesperson confirms to the business newspaper that the jobs to be cut are “part of the ongoing management of our company” and are “not a result of the recently completed strategic review known as Project Everest”.
EY is also active in our country and is one of the four largest accounting and consulting firms, along with KPMG, PwC and Deloitte.
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