EY cuts 148 jobs as businesses pull reduce their spending on consulting

EY has slashed jobs for the second time in six months, as businesses reduce their spending on consultancy services.

EY has cut its workforce for the second time in six months. Picture: Chris Pavlich

The consulting arm of EY Oceania will bear the brunt of 148 job cuts, as the environment for the professional services giant worsens.

EY staff were called into meetings from early Tuesday to break the news that there would be redundancies across the firm’s consulting and financial services divisions.

The Australian a week ago revealed that jobs cuts were impending.

EY Oceania chief executive David Larocca said the firm told staff about the “difficult decision” on Tuesday which were “required” after a drop off in business areas “particularly affected by the continued downturn in demand”.

Emails went out early in the day inviting members of the firm’s financial services and consulting team to attend a staff call to find out “what this means for you individually”.

“We are offering all the support we can to the people who are leaving the business, including with ‘directioneering’ support and assistance,” Mr Larocca said.

“We thank them for their valuable contribution to our business and wish them the best for the next step in their careers.”

EY regional managing partner and chief executive David Larocca.

Sources believe job losses would exceed EY’s figure, noting that the firm has previously turned to aggressive performance management strategies to reduce its headcount outside of the redundancy process.

The latest cuts from EY follows rivals Deloitte, KPMG, and PwC announcing rounds of lay-offs.

The professional services sector had experienced bumper years of revenue growth and a ramp up in hiring during the height of the pandemic.

EY has already cut back in its business and laid off 232 staff in November.

PwC retrenched 366 staff and partners in March.

Mr Larocca said the cut jobs would not affect the firm’s focus on “building a safe and inclusive workplace for all”. EY committed to a cultural transformation in the wake of a scathing review by former Australian sex discrimination commissioner Elizabeth Broderick.

The report, published in July last year, found EY had a culture of long work hours and overwork, and identified instances bullying and negative experiences in the workplace.

Ms Broderick made 27 recommendations to improve workplace culture and staff wellbeing.

The review came after the death of an EY staff member at work.

“We remain absolutely committed to delivering on all the recommendations of the Elizabeth Broderick and Co report, and to investing in our culture transformation,” Mr Larocca said.