We received several reports over the weekend and today about regional restructuring at Ernst & Young that will go into effect on January 1.
The majority of the North Central region will combine with the Mid-Atlantic region to form the new “East-Central” region, while the Toledo and Detroit offices will join the Midwest region. One source has told GC that this move is “an effort to reduce infrastructure and we should not be distracted from our client serving duties.”
We have also confirmed that the Pacific Northwest and Pacific Southwest regions will combine into a single “West” region. Again, sources indicating this move is an attempt to reduce overhead costs, saying “Lots a current senior leadership will be moved around,” as a result of this consolidation.
Both regions have seen significant layoffs just in the past month, and reports as recently as December 9th for the North Central. Some may go so far to say that the layoffs were a precursor to these plans but that’s speculative sport on our part.
We reached out to an E&Y Spokesperson who said that the firm prefers not to comment on internal matters.
E&Y’s restructuring follows a major restructuring at KPMG that we reported on earlier this year which saw several leadership changes and rumors of the firm consolidating down to two regions in the U.S.
One of our sources indicated that more news is expected this week so if you have any further details on these changes, get in touch with us, and discuss your thoughts in the comments.
Ernst & Young Restructuring Plans Affect North Central, Pacific Regions
We received several reports over the weekend and today about regional restructuring at Ernst & Young that will go into effect on January 1.
The majority of the North Central region will combine with the Mid-Atlantic region to form the new “East-Central” region, while the Toledo and Detroit offices will join the Midwest region. One source has told GC that this move is “an effort to reduce infrastructure and we should not be distracted from our client serving duties.”
We have also confirmed that the Pacific Northwest and Pacific Southwest regions will combine into a single “West” region. Again, sources indicating this move is an attempt to reduce overhead costs, saying “Lots a current senior leadership will be moved around,” as a result of this consolidation.
Both regions have seen significant layoffs just in the past month, and reports as recently as December 9th for the North Central. Some may go so far to say that the layoffs were a precursor to these plans but that’s speculative sport on our part.
We reached out to an E&Y Spokesperson who said that the firm prefers not to comment on internal matters.
E&Y’s restructuring follows a major restructuring at KPMG that we reported on earlier this year which saw several leadership changes and rumors of the firm consolidating down to two regions in the U.S.
One of our sources indicated that more news is expected this week so if you have any further details on these changes, get in touch with us, and discuss your thoughts in the comments.
Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.
- Tags: Restructuring, Shake it Up
