EY axes 50 jobs as consulting sector plummets

The big four firm has axed up to 50 jobs, including partners, across its consulting sector.

EY Australia has confirmed a round of redundancies in its consulting sector, with the cut of more than 50 jobs as the entirety of its Future Friendly team and members of its health services team are sent packing.

Yesterday afternoon (Tuesday, 18 November), The Aussie Corporate posted that the big four firm had undertaken around 50 redundancies while all of the firm’s partners were in Sydney for development workshops.

When asked about the redundancies by Accounting Times, an EY spokesperson confirmed the news to be correct, yet stated the firm had made redundancies across a “small number” of its consulting teams.

“We recently announced changes to a small number of consulting teams, impacting less than 1 per cent of roles across our Oceania workforce,” EY told Accounting Times.

“We recognise the impact this had on our people and are committed to supporting them through this transition, while remaining dedicated to delivering high-quality services that meet the evolving needs of our clients.”

According to a report made by The Australian, the firm cut its entire Future Friendly team after having only been purchased less than two years ago, as well as its health services team.

The Australian also noted that EY had shared that it regularly reviewed its operations to ensure its “business and workforce remained aligned with market conditions and client needs”.

The 50 redundancies follow the PwC scandal, which has continued to leave its mark and impact on the big four firms, as they try to navigate the aftermath and betrayal of public and government trust, as well as a lack of demand in the consulting region.

KPMG also made cuts to its consulting teams in June 2024, with the cut of 200 jobs and a pivot towards technology advisory in a move to save $80 million and “adapt to industry pressures”.

Just two years ago, EY made 232 staff redundant as consulting demand first began to plummet in an “uncertain environment”.

This original cut came at the beginning of the 2024 financial year when the firm’s expectations of growth had been cut short by a market downturn.

This recent round of job cuts is the second round of consulting arm redundancies for EY this year, as it axed about 100 staff back in February as the slowdown in the advisory market sustained.

Again, the cut represented only 1 per cent of its workforce at the time, with the firm having stated the decision was “incredibly difficult” and that it would continue to make an effort in supporting its people.