EY preparing to cut UK jobs amid slowing demand for services
EY is planning to cut jobs in Britain as a challenging market environment crimps appetite for professional services.
The firm’s UK financial services consulting practice “has taken measures to align current resourcing requirements with market demand,” the company said in an emailed statement. “Regrettably, a group of employees in this part of the business are now subject to a redundancy consultation process.”
The cuts will affect about 5 per cent of the 2300 people employed in the financial services consulting division, the Financial Times reported earlier on Thursday (Friday AEST), citing unnamed sources.
The firm has also told its UK staff to expect less generous pay raises and smaller bonus pools that would be shared among fewer people, the FT report said.
The move comes after rival PwC announced it was cutting pay increases and bonuses for some of its 25,000 UK employees. An uncertain economic outlook is reversing the fortunes of the big four accounting firms, which hired hundreds of thousands of people betting on a post-COVID recovery.
Still, EY’s UK unit is seeing double-digit growth and most of its local employees will receive a pay raise this year, as well as a variable bonus, the company said.
Bloomberg
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