EY UK to Cut 10% of Staff in Business Services Amidst Ongoing Restructuring Efforts

Introduction

In a bold response to shifting market conditions and internal restructuring, EY’s UK branch has announced plans to reduce its business services workforce by nearly 10%. This move comes amid a broader realignment of the company’s operations to streamline processes, enhance efficiency, and adapt to slower growth in professional services. The decision marks one of the most significant job cuts by the Big Four accounting firms in the UK in recent times.

Understanding EY’s Restructuring Strategy

EY, also known as Ernst & Young, is one of the four largest professional services networks in the world. Renowned for auditing, consulting, and advisory services, the firm employs over 20,000 people in the United Kingdom alone. However, responding to global economic uncertainty and demand fluctuations in 2024, EY has begun recalibrating its business model.

The current job reduction plan affects approximately 150 staff in the Business Services sector — a key area that includes internal functions such as finance, IT, HR, marketing, and administrative support. While this group isn’t client-facing, it plays a vital role in enabling EY’s overall operations.

Key Drivers Behind the Job Cuts

EY identified several reasons for this workforce reduction, notably:

• Post-pandemic economic conditions: Like many global organizations, EY is grappling with the lasting effects of the COVID-19 pandemic. Budget tightening and an uncertain economic climate have forced companies to reevaluate staffing and operational costs.
• Slower revenue growth: EY has experienced a deceleration in growth in the UK, particularly within parts of its advisory and consulting practices.
• Increased automation: Technological advancements and increased use of digital tools have reduced the need for some manual and administrative roles within the business services department.
• Aborted plans for the “Project Everest” spin-off: Last year, EY aimed to split its audit and consulting businesses through an initiative known as Project Everest. The plan was shelved after disagreements, leading to further internal restructuring and cost management.

Impact on Employees and Operations

The job cuts represent approximately 10% of the 1,500 employees in the business services unit. According to sources within EY, affected workers will be offered support including redundancy packages, counseling, and assistance in transitioning to new roles either inside or outside the organization.

This round of redundancies is part of a broader trend across the professional services sector, with other Big Four firms including PwC, Deloitte, and KPMG also enacting staff reductions in various departments due to waning consulting demand and increased operational costs.

How EY is Supporting Its Workforce

EY has emphasized its commitment to conducting this transition with empathy and transparency. Support initiatives for impacted staff include:

• Comprehensive severance packages
• Career counseling and professional coaching
• Internal placement opportunities in growing areas of the firm

According to an EY UK spokesperson, “Where change is required, we are committed to carrying it out responsibly and transparently. We recognize this is a difficult time for those impacted, and we’re focused on providing the right support and resources.”

The Bigger Picture: Professional Services Face Industry-wide Disruptions

The current business environment for firms in the professional services sector is highly dynamic. Several transformative trends are contributing to staffing and structural changes in firms like EY:

• Digital Transformation: Automation, AI, and machine learning are increasingly handling tasks previously completed by human teams.
• Client Budget Cuts: Clients are facing their own financial pressures and are cutting back on advisory and consulting fees.
• Geopolitical and Economic Uncertainty: Global instability, inflation, and supply chain disruptions continue to affect corporate spending patterns.
• Regulatory Scrutiny and Competition: Heightened regulatory demands and a more competitive industry landscape have compelled firms to operate leaner and sharper.

Comparison with Other Big Four Firms

EY’s decision aligns with broader movements seen among its competitors:

• KPMG announced cuts to hundreds of jobs in its consulting practice earlier this year, attributing it to a slowdown in client spending and long project timelines.
• PricewaterhouseCoopers (PwC) trimmed its workforce in Australia and hinted at UK job reductions as part of cost-saving efforts.
• Deloitte has similarly realigned some business units and implemented hiring freezes in specific departments.

These actions reflect a sector-wide recalibration after years of aggressive growth and expansion, particularly during the digital boom of the past decade.

Looking Forward: Opportunities and Challenges

Despite the current downsizing, EY remains optimistic about the long-term outlook. The firm has reiterated its focus on investing in high-demand areas such as:

• Technology and cybersecurity consulting
• Sustainability and ESG advisory services
• Legal and tax advisory solutions

This transition period offers an opportunity for EY to refocus its operations on sectors that promise better scalability and ROI. With clients ranging from FTSE 100 firms to high-growth startups, EY’s future growth may depend heavily on its ability to evolve with the market.

What Current and Prospective Clients Should Know

Clients and partners of EY can continue to expect:

• High-quality service delivery amid internal optimization efforts
• Improved agility with streamlined support teams and processes
• Continued investment in technology, regulatory compliance, and innovative offerings

Indeed, while restructuring can be disruptive, it often leads to a leaner, more effective organization equipped to meet modern challenges.

Conclusion

EY UK’s announcement to cut around 10% of its business services staff underscores the volatility impacting the professional services industry in 2024. With economic pressures, evolving client needs, and increasing automation transforming traditional roles, firms like EY are being forced to reevaluate and reshape.

While the move is difficult, it signals EY’s commitment to long-term sustainability and operational excellence. As the firm recalibrates to align with market realities, stakeholders should watch for shifts in service delivery, investment in new capabilities, and perhaps even more structural changes ahead.

For employees, clients, and competitors alike, this is a moment of transformation—not only for EY, but also for the industry at large.

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