EY has reportedly told its employees it will cut 3,000 jobs in the U.S., or about 5% of its U.S. workforce, to limit “overcapacity,” the Financial Times reported.
“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,” an EY spokesman said, the Financial Times (FT) reported. (RELATED: REPORT: ESPN Layoffs Are Looming, And Apparently No One’s Job Is Safe)
The layoffs will mostly affect the consulting side of the firm, and the announcement was made less than a week after EY’s failed plan to create a new company codenamed Project Everest from its global consulting business, FT reported.
“These actions are part of the ongoing management of our business and not a result of the recently concluded strategic review, known as Project Everest,” the spokesman said, FT reported.
In February, EY’s competitor McKinsey & Co. said it’s planning on cutting 2,000 jobs under a plan called Project Magnolia, Bloomberg reported. That same month, KPMG reportedly laid off 700 jobs in the U.S., according to FT. In March, Accenture said it plans on slashing 19,000 jobs worldwide, CNN reported.