EY to cut jobs and hand out smaller pay rises

Henry Saker-Clark, PA Deputy Business Editor
Thu, 17 August 2023 



EY is set to cut jobs in the UK and has told staff to expect less generous pay rises as it seeks to cut costs.

The accounting giant has confirmed the round of redundancies will impact staff at its financial services consulting arm amid pressure on market demand.

EY will axe more than 5% of the roughly 2,300-strong practice, with 150 jobs due to be impacted which advise on business transformation and risk management, according to the Financial Times.

It comes after the firm said in April it planned to cut 3,000 jobs in the US, as it blamed “overcapacity” at the firm.

Workers are also expected to receive smaller pay rises and bonus pools for the year.

Meanwhile, partners, who own and run the business, will be paid out of profits for the year.

Last year, the average partner at EY received a record £803,000 in pay after surging demand for the firm’s services.

A spokeswoman for EY said: “EY continues to perform strongly, with double digit growth in the UK, and 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.”