EY cuts dozens of US partners and pauses new hires

The news: EY will lay-off dozens of US partners, largely concentrated on the advisory side of its US operations, according to the Wall Street Journal.

The numbers: The cuts are likely to affect over 10% of partners in consulting and 4% in strategy and transactions, with the audit and tax divisions also likely to be impacted. The cuts would amount to over 130 partners at both junior and senior levels.

The context: The accounting firm makes annual reductions for unsatisfactory performance, however this year’s reduction is larger than usual. EY began notifying those impacted last week, and has deferred the start dates for some new hires. This is a second wave of cuts for the firm, which laid-off 3,000 employees in April this year, just under 5% of its US headcount.

What they said: Responding to WSJ, an EY spokesperson said: “EY will offer comprehensive support to those who are affected […] As part of our long-term planning, EY has been transforming our business to focus on the areas where our clients have the greatest needs.”