EY layoffs: Financial services giant Ernst & Young (EY) layoffs have reportedly started in the United States (US). As per reports, EY said that it would trim almost 3,000 jobs in the US due to ‘overcapacity’ at the firm.
Ernst & Young layoffs represent less than 5% of the US workforce of the company
EY layoffs: Financial services giant Ernst & Young (EY) layoffs have reportedly started in the United States (US). As per reports, EY said that it would trim almost 3,000 jobs in the US due to ‘overcapacity’ at the firm.
According to an AFP report, Ernst & Young layoffs are also a part of the bigger restructuring plans by the company. It adds that these job cuts at EY represent less than 5 per cent of the US workforce, also signalling towards the overcapacity of 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 five percent of our US workforce,” AFP quoted an Ernst & Young spokesperson as saying.
Ernst & Young layoffs come at a time when the company, just few days back, announced the scrapping of its ‘Project Everest.’ A project that was aimed at separating EY’s auditing and consulting units for growth and fewer conflicts, was scrapped due to ‘conflict of interest.’
The report adds that the Ernst & Young spokesperson also said that these job cuts “are a part of the ongoing management of our business and not a result of the recently concluded strategic review.”
Ernst & Young is a part of the ‘Big Four’, a British financial services giant known for its work. However, the news of layoffs at EY comes at a time when the world economy is traversing an economic downturn.