Ernst & Young (EY) has decided to lay off 5% of its global workforce. The company aims to cut costs due to the economic uncertainty caused by the pandemic and changes in the business world.
Ernst & Young is an international auditing and consulting services firm operating in approximately 140 countries worldwide. It is considered one of the Big Four firms along with Deloitte, PricewaterhouseCoopers, and KPMG.
These layoffs are expected to occur mainly in countries such as the United States, the United Kingdom, and Australia. EY had a 3% layoff rate in the 2020 fiscal year.
Ernst & Young’s competitors, Accenture and McKinsey, have also recently laid off thousands of employees. Accenture laid off 19,000 people, equivalent to 2.5% of its global workforce, while McKinsey closed 1,400 positions, representing 3% of its employees.
The company stated that this decision was a measure taken to ensure business continuity and maintain service quality for its customers. EY’s move could trigger similar steps by other companies in a period of continuing uncertainty in the business world.
Additionally, Financial Times, the first newspaper to report on the cuts at Ernst & Young, reported that layoffs would be largely on the consulting side of the company.