EY to cut UK jobs after telling staff to expect smaller pay increases and bonuses
EY is ready to cut UK jobs and has told staff to expect smaller pay increases and bonuses as economic storm clouds gather.
The audit giant faces rising costs just as the post-pandemic boom in professional services cools.
The Big Four firm said it would cut about 150 jobs across two teams at its financial services consulting practice, which employs about 2,300 people. It comes after he said in April that he plans to cut 3,000 jobs in the US.
Costs rise: Audit giant EY faces rising costs just as the post-pandemic boom in professional services cools
Workers in the UK are also expected to receive smaller pay increases and bonus funds. Meanwhile, the partners, who own and run the business, will be paid out of the year’s profits.
Its UK partners were paid an average of £803,000 for the year to June 2022, an all-time high, while staff bonuses rose to £110m.
An EY spokesperson 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 increase and variable bonus payment this year.”
She said she had to ‘align current resource requirements with market demand and some staff are subject to a redundancy consultation process.
It’s not the only professional services firm cutting payments. PwC said its staff should expect smaller salary increases and bonuses due to “challenging” market conditions.
EY this week rejected a proposal by TPG for the US private equity firm to acquire a stake in EY’s consulting business.