EY Cutting U.S. Jobs, Delaying Start Dates for New Hires

By Irina Anghel, Bloomberg News (TNS)

Ernst & Young LLP is cutting jobs and delaying start dates for some new hires across the U.S., the latest moves by a consulting giant to deal with an industrywide slowdown in demand for its services.

The job cuts will affect “a limited number of people” in the firm, according to a statement from EY’s U.S. unit. The company vowed to offer support for those impacted by the moves.

“EY has been transforming our business to focus on the areas where our clients have the greatest needs,” the statement said. “These decisions have been thoughtfully made with respect and fairness for all of our people and the future of our business.”

The Wall Street Journal earlier reported on the job cuts.

EY and its rivals have said a growing number of clients are shelving longer-term investments as they navigate an uncertain macroeconomic environment, meaning there is less work for their consultants to come in and advise companies on. It’s a stark turnaround from just a few years ago, when a pandemic-induced boom in demand spurred hiring sprees across the industry.

At EY, the moves come just weeks after the firm picked Janet Truncale as its next chief executive officer, placing the first woman atop a Big Four audit firm. Truncale is taking the reins in the wake of the accounting firm scrapping its intended breakup, which included a plan for the company to spin off its consulting business and much of its tax practice into a stand-alone public company.

That plan was jeopardized after EY’s influential U.S. affiliate balked, while partners squabbled over key issues like how to divide the tax practice.

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