EY isset to cut jobs in the UK and has told staff to expect smaller pay rises and bonuses as economic storm clouds gather.
The auditing giant is facing increasing costs just as a post-pandemic boom for the professional services cools off.
The Big Four firm said it would slash around 150 jobs in two teams in its financial services consulting practice, which employs around 2,300 people. It comes after it said in April it plans to cut 3,000 jobs in the US.
Costs up: Auditing giant EY is facing increasing costs just as a post-pandemic boom for the professional services cools off
Workers in the UK are also expected to receive smaller pay rises and bonus pools. Meanwhile, partners, who own and run the business, will be paid out of profits for the year.
Its UK partners were paid an average of £803,000 for the year to June 2022, an all-time high, while staff bonuses surged to £110million.
A spokesman for EY said: ‘EY continues to perform strongly, with double digit growth in the UK, and the vast majority of our people will receive an annual pay rise and variable bonus payment this year.’
She said it had to ‘align current resourcing requirements with market demand and some staff are subject to a redundancy consultation process.
It is not the only professional services firm to curtail payouts. PwC said its staff should expect smaller pay increases and bonuses due to ‘challenging’ market conditions.
EY this week snubbed a proposal from TPG for the US private equity firm to take a stake in EY’s consulting business.
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