A global consulting firm Ernst & Young (EY) said Monday it is cutting about 3,000 jobs in the U.S., affecting about 5% of its workforce.
According to multiple outlets, the company cited “overcapacity” and “the impact of current economic conditions” as contributing factors to the decision.
This Job cuts Just days after EY announced plans to revamp its business by spinning off its auditing and consulting services. In September, the company announced its intention to split divisions from the auditing and consulting arms of the business over regulatory conflicts of interest — a move dubbed “Project Everest.”
However, early last week, Per Financial Times.
“We have been informed that the US Executive Committee has decided not to proceed with the design of Project Everest,” the company wrote in the note, which was seen by the Financial Times. “Given the strategic importance of US member firms to Project Everest, we are ceasing work on the project.”
As for the current layoffs, the company said the decision was unrelated to the review, but was “part of the ongoing management of the business,” per BBC.
EY isn’t the only consulting firm trimming its workforce. Last month, McKinsey & Co. announced it would cut about 19,000 jobs, and, in February, KPMG announced 700 job cuts, according to Bloomberg. informed.