Some unlucky folks at Grant Thornton U.K. are taking the hit for the firm’s miserable 2018, which saw GT stop bidding for new audit work at the largest U.K. companies, the CEO not seeking a second four-year term after a partner revolt, revenue dip from £500 million in 2017 to £491 million last year, partners’ average pay drop 8%, the firm fall from the fifth-largest to the sixth-largest accounting firm in the U.K, and an investigation into GT’s audits of U.K. coffeehouse chain Patisserie Valerie, which collapsed in early 2019 as a result of a major accounting scandal.
Economia reported on March 18:
Grant Thornton UK is planning to make 50 to 60 staff redundant as the firm continues to implement its plan to restructure its operations.
The top 10 firm is currently in consultations with staff which will complete on 10 April. Downsizing is predominantly targeted at roles in brand, marketing and communications and in people and client experience functions.
A GT spokesperson told Economia and other U.K. media outlets:
“The next phase of this transformation is to ensure our teams provide the right level of support for profitable growth and create an environment that makes it easier for our people to do great work.
“Sadly, this will result in a reduction of a number of roles in these functions and the firm has begun a consultation period with those who are impacted.
“This is not a decision we take lightly and it has not been easy, but transformation is essential to ensure we build a long-term, sustainable future for the whole firm.”
Regardless of how the firm spins it, Grant Thornton U.K. is in a serious state of disarray. Hopefully there’s no more bloodletting.
Good luck to those who are impacted by the cuts.
A new survey of more than 300 chief audit executives (CAEs) by Grant Thornton LLP finds that while nearly half believe that the shifting regulatory landscape poses the greatest threat to their company, a vast majority (88%) do not believe that the Sarbanes-Oxley Act (SOX) should be repealed. Of those that believe SOX should be repealed, the cost of compliance is the main reason for doing so. “Since the passage of SOX, organizations have had to dedicate significant resources to comply with a host of new laws and regulations,” noted Warren Stippich, a Chicago-based partner and Grant Thornton’s national Governance, Risk and Compliance solution leader. “Based on discussions with various CAEs during the survey process, many believe that SOX brings a continued focus by management on financial and governance-related controls. However, CAEs believe that compliance audit processes are now well-defined and are currently exploring ways to contribute value creation to the organization well beyond compliance monitoring and reporting.” [