We are still working on a more detailed post-mortem of the Project Everest collapse and our guesses for what comes next but in the meantime, check out what The Guardian ran this morning.
EY has reportedly told UK staff to brace for a wave of cuts, after the business spent $600m (£480m) globally preparing for a now-scrapped breakup of its operations.
Bosses at the accounting firm told staff during a phone call on Wednesday that it felt like a “low point” for the business, and admitted they were “disappointed and embarrassed” by the deal’s collapse.
Yeah, Andy Baldwin should be especially disappointed and embarrassed. Tremendously. He’s the one who said “it may come to timing point, so our plan is that we will continue to what we call soft separation next year, and continue to start to run these two businesses separately, albeit they will continue to be part of the single enterprise of EY” in December.
While it was not immediately clear how the costs would be spread across its global operations and over time, UK bosses said they would start cutting costs from July.
“We have inefficiencies in our business, which we can start to address now so we are already working on reducing our costs,” the EY’s UK managing partner for financial services, Anna Anthony, reportedly said on the call.
Start cutting costs? They’ve been cutting costs since last year. While EY has been somewhat open about belt tightening since Everest was first announced last spring, we’ve also heard of secret layoffs, hiring freezes, and of course the whole thing with mid-year bonuses that people are still angry about. How much tighter can the belt get?
The question is: will we see vocal pro-Everest leadership get drawn and quartered before the fallout trickles down to the lower level grunts? Are there even any spare grunts to cut? Will the drawings and quarterings be publicized??🤞
EY tells UK staff to expect cuts after breakup failure [The Guardian]