British financial services firm EY to cut 3,000 jobs in US

UK financial services giant EY on Monday announced it will cut 3,000 US jobs, citing overcapacity at the firm.

The move comes a week after the firm dropped a plan to split its audit and advisory units.

“After assessing the impact of current economic conditions, strong employee retention rates and overcapacity in parts of our firm, we have made the difficult business decision to separate approximately 3,000 US employees, representing less than five percent of our US workforce,” said an EY spokesperson.

EY halts planned reorganisation

The move comes after EY stopped its planned reorganisation, called “Project Everest,” which aimed to accelerate growth and avoid conflicts of interest.

The change was opposed by the firm’s US branch.

EY said the job cuts “are part of the ongoing management of our business and not a result of the recently concluded strategic review,” the spokesperson said.

The job cuts follow recent downsizings at other large accounting firms and consultancies.

Tech consultancy Accenture announced in March it was cutting 19,000 jobs, or 2.5 percent of its workforce. KPMG and McKinsey have also announced job cuts recently.

With inputs from AFP

Read all the Latest News, Trending News, Cricket News, Bollywood News,
India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.