EY poised to cut jobs and rein in bonus pots – reports
EY is poised to slash a number of jobs and has warned staff they will face more meagre pay rises and smaller bonus pots this year as it battles with rising costs, according to reports.
The Big Four firm’s UK bosses have told staff it will cut more than five per cent of its near 2,300 financial services consulting team, with around 150 jobs set to be cut in teams that advise on business transformation, the Financial Times reported this morning.
Bonus pools will also be cut by more than half and spread among a smaller group, the FT reported.
EY told the FT in a statement it was performing “strongly” and that “the vast majority of our people will receive an annual pay rise and variable bonus payment this year”.
“EY’s UK financial services consulting practice has taken measures to align current resourcing requirements with market demand. Regrettably, a group of employees in this part of the business are now subject to a redundancy consultation process,” it added.
The job cuts follows a round of more severe lay-offs in the US business, which announced in April it would slash some 3,000 jobs.
Consultancy firms have been battling with a downturn in the deals environment and rising costs.
City A.M. revealed earlier this year that EY rival KPMG would slash the bonus pool of its UK workforce and reined in commission for salespeople, as its profits falter amid a slowdown in the dealmaking environment this year.