[Updated on Aug. 10 with additional information.]
We heard from another EY employee in Mexico who told us over the weekend that the situation at the firm is “worse than you may imagine.” This person said that the leadership at EY Mexico has allegedly given employees an ultimatum: accept a 15% pay cut by this Wednesday or risk being fired.
This EYer told us:
In the past days it was announced that EY Mexico will cut 15% of the salary to all of the employees (from Partners to Staff) and it will start on September 1. They think that since we are all in Home Office we do not know about the recent cut off of the personnel. Therefore EY Mexico is giving all of the employees only a week to sign the amendment of the labor agreement accepting the cut; if we do not sign they are told that they will fire and settle the employee.
For the above, all of the employees are very upset with this announcement since in June we were told that EY Mexico grew 3.8% in their income in comparative of the last fiscal year; meaning that this cut is to “prevent” any situation for this Fiscal year 2021.
Sadly I can see that EY Mexico is willing to protect their income and not the personnel who are the engine of the company and the ones who deliver the work needed.
I started working in EY Mexico in 2014 and every year we were told that EY Mexico obtained more income than the one they budgeted; so they were close to their “vision 2020”. I worked all the days over 12 hrs daily, most of them I started at 8:30 am and used to get out of the office at 10:00 pm. I loved my job, I loved EY. But as I said EY prefer to cut people and not to protect them.
The last day to accept the cut of 15% is August 12; and as of today [Aug. 8] I have heard at least 50 persons that will accept the settlement from EY. So I think at least 50% of the current employees will leave EY Mexico.
Next Tuesday we will have a third webcast and I think EY Mexico will be scared with all of the reactions; I think they thought that giving all employees a week was enough for them to be scared and accept the agreement.
EY Mexico has still not responded to our repeated requests for comment.
We’ll continue to update this article as we receive more information.
[Updated on Aug. 7 with additional information.]
We got a tip Wednesday night from someone who claimed (s)he was laid off from EY Mexico last week—and that this person wasn’t the only one to lose their job. Also, there have been pay cuts, according to the tipster:
Many people have been laid off, and today was announced that all people will have a pay cut of 15%. Partners will have a pay cut of 30%.
And there will be no raises for this year, and no performance bonuses.
People are not getting indemnified as it should be in accordance with the Mexican Law.
This info is unconfirmed right now, but we wanted to throw it out there to see if it someone can substantiate what we were told.
We reached out to EY Mexico’s PR team first thing on Thursday morning to get a confirmation but we have yet to hear back from anyone.
So get in touch with us using the contact information below if you or your team have been impacted by these alleged layoffs and pay cuts at EY Mexico.
[UPDATE] We heard from two people who work at EY Mexico on Thursday evening, and while the extent of the layoffs at the firm is unclear, both EYers confirmed the 15% pay cut for employees. EY Mexico still hasn’t returned our request for comment.
One EYer who contacted us said that at least two people have been let go at their office. Regarding the pay cut, this person told us:
You need to sign an addendum (kind of a new job contract) were you accept the 15% pay cut (they do this to comply whit the Mexican Labor Law), I don’t know the if the process of partners is the same.
They haven’t been clear what happens when you decide not to sign this new contract (as an individual you have the right to decline signing), HR has been very secretive about this cases.
This person added that EY Mexico was scheduled to have a call with employees on Friday to address concerns and questions employees have.
The other EYer who contacted us said the 15% pay cut will last “from September until, at the very least, June 2021.”
This person added:
I have no information on pay cuts for partners. Also no bonuses, and probably cut down benefits (some of which are calculated on base salary).
I have not heard about layoffs but I have been told that people who were under temporary contracts did not have them renewed.
According to the leaders, this decision was made so that there would be no layoffs.
We’ll continue to update this article as we get more information.