EY to cut 150 UK consultants as division head steps down
Big Four accountancy firm EY is set to cut 150 roles in its UK consultancy division and replace one of its most senior executives amid a slowdown in demand.
Cuts in the 4,700-strong unit are expected to impact managers, senior managers and directors, it is understood, which are the highest-paid roles below partner level.
Meanwhile, EY’s UK & Ireland managing partner of consulting, Benoit Laclau, is stepping down from his role after nearly five years.
Laclau, who joined EY 13 years ago, is due to continue serving some of the firm’s biggest clients and lead its “technology driven pursuits in the UK”, a company spokesperson told City PM. They added that a selection process for his replacement is underway.
Management consultants at EY and other Big Four firms are experiencing weaker demand for their services after a boom during the Covid-19 pandemic. In October, EY reported its weakest annual revenue growth in 14 years at 3.9 per cent across the firm.
In the UK, where EY employs some 20,000 people, its consulting and strategy revenues came in four per cent lower, coupled with a 13 per cent drop in revenues from transactions.
The Big Four firms – KPMG, PwC, Deloitte and EY – have tried to reverse much of the heavy hiring done during the Covid era with thousands of job cuts, as clients struggling with tighter monetary conditions reduce spending on costly external advisers.
An EY spokesperson said: “EY regularly reviews the resourcing needs of the business. Regrettably, proposals put forward in part of the UK consulting practice may result in a reduction of 150 roles. A consultation process is now underway with those impacted by these proposals.”
The move underscores some of the challenges Anna Anthony will inherit when she becomes EY UK’s first-ever female leader in January.
Further pressure could stem from the new government’s plans to slash spending on outside consultants and save more than £1bn over the next two years amid criticism that Whitehall has grown overly reliant on costly advisers, including the Big Four.
The Sunday Times first reported the cuts at EY.