Ernst & Young is laying off dozens of partners in its US offices amid declining revenues in the accounting sector and a failed effort to break up the company.
The firm said the layoffs will affect more than 130 junior- and senior-level staffers who work primarily on the advisory side of the company’s US-based operations.
The layoffs will impact more than 10% of partners in consulting and around 4% in strategy and transactions, according to The Wall Street Journal, which was the first to report the news.
Management started informing affected workers last week of the decision, according to The Journal.
The Post has sought comment from Ernst & Young.
A company spokesperson told The Journal that the layoffs would affect a “limited number of people.”
Ernst & Young also said that it would defer start dates for some new hires in certain areas of the business.
“These decisions have been thoughtfully made with respect and fairness for all of our people and the future of our business,” the spokesman said.
“EY will offer comprehensive support to those who are affected.”
“As part of our long-term planning, EY has been transforming our business to focus on the areas where our clients have the greatest needs,” the spokesman added.
In April, EY said it was shedding 5% of its workforce, affecting around 3,000 of the company’s US employees.
The move was made after the company abandoned its plans to split its auditing and consulting units into two separate firms.
In June, KPMG, another of the “Big Four” accounting services, laid off 5% of its workforce due to a slowdown in demand for consulting.
Deloitte, another accounting and consulting giant, cut 1.5% of its workforce — or 1,200 jobs — in April.
EY’s job cuts were announced during a time of transition for the company.
The firm recently named Janet Truncale as its next CEO.
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