EY faces backlash as 150 senior consultants set to be laid off
- Ernst & Young plans to cut 150 senior consulting positions amidst falling demand for advisory services.
- The layoffs will primarily impact managers and senior managers within the consultancy division.
- This move indicates a larger trend in the consultancy sector responding to economic challenges.
In recent weeks, Ernst & Young (EY), a prominent player in the Big Four accountancy circle, has announced significant layoffs within its consultancy division due to a noticeable decline in demand for advisory services. This division, which employs around 4,700 individuals, will see the job cuts predominantly affect managers, senior managers, and directors, who occupy the highest-paid positions below partner level. The situation reflects broader trends in the consultancy sector, where firms are readjusting their workforce in response to changing market conditions. Amid these layoffs, the head of consulting at EY, Benoit Laclau, has also decided to step down from his role, capping a five-year tenure. Laclau, who has been with EY for 12 years and has held various senior roles both in the UK and globally, is one of the key figures associated with the consultancy division. His resignation, along with the planned layoffs, has triggered speculation about the future direction of the consultancy practice and how EY intends to navigate this drop in demand. The cuts come at a time when many firms are experiencing pressure to deliver greater value amid economic uncertainties, with clients tightening budgets and seeking more specialized advice. The decision to reduce headcount highlights a proactive approach by EY in managing its workforce and financial health during tough times. Industry analysts are keenly watching how these cuts will affect EY’s positioning in the competitive consultancy landscape and what strategies will be implemented moving forward. Overall, this response to the changing market dynamics illustrates the ongoing challenges faced by advisory firms, as they adapt to the realities of fluctuating demand for their services. The repercussions of these layoffs may lead to alterations in the company’s operational structure and influence the culture within its consultancy division. As the situation evolves, many are left questioning the longer-term implications for both staff morale and client service delivery, especially as firms like EY strive to remain competitive in a tightening market.