Ernst & Young is poised to make another round of job cuts, this time hitting staff in its UK business.
Though less severe than April’s cuts, EY is set to make around 150 redundancies, equating to over 5% of its UK-based financial services consulting wing.
Staff in the accountancy firm’s 18,500-strong British workforce have also been warned that bonuses will be smaller this year, according to the Financial Times.
EY has already faced trouble this year, announcing 3,000 job cuts in April on the back of rising costs and a deteriorating economic outlook.
Having enjoyed rapid growth in the wake of the pandemic, the wider professional services firm has been reeling from a sudden downturn in demand in 2022, with KPMG and Accenture (NYSE:ACN) also among those to have made cuts.
EY, for instance, had moved to spin out its consultancy arm but shelved the plans in April over concerns the new business would not cope.
This was in spite of a US$600 million bill the prospective move had already racked up.
“The vast majority of our people will receive an annual pay rise and variable bonus payment this year,” the company said in a statement.
“EY’s UK financial services consulting practice has taken measures to align current resourcing requirements with market demand.
“Regrettably, a group of employees in this part of the business are now subject to a redundancy consultation process.”