Multiple sources are reporting that the King’s EY is looking at axing about 150 people in consulting, 3% of that service line and 1% of the overall workforce. Bloomberg Law said the cuts are “another sign of a weak consulting market that lately has affected big accounting firms globally” but with how long this excuse has been going, it’s really starting to feel like firms are just bad at managing their headcounts and making money.
Some more details:
The firm also announced that Benoit Laclau, UK and Ireland managing partner of consulting, is stepping down from the role after five years but will remain with the firm to lead technology-driven efforts. The firm is searching for a new consulting boss, EY said.
“EY regularly reviews the resourcing needs of the business. Regrettably, proposals put forward in part of the UK Consulting practice may result in a reduction of 150 roles,” the Big Four accounting and consulting firm said.
Laclau’s Xitter feed is a fun read. Having not been updated in a couple years, it’s a time capsule harkening back to a period when firms thought the Covid stimulus would last forever and when EY partners were twirling their invisible mustaches at the prospect of millions of dollars falling from the sky after the Project Everest split (LOL). A couple retweets from mid-2022:
.@EY_UKI Consulting will double the size of its business in response to high client demand for large, strategic #transformation programmes.
— Alison Kay (@AlisonKayEY) April 5, 2022
With 80 new partners, £75m investment & 4 new acquisitions, EY is helping clients compete in times of rapid change https://t.co/u0f8HGzbJ6 pic.twitter.com/T0WiDTiXpe
Proud to announce the significant growth plans for our UK & Ireland Consulting business as we aim to double the size of the team to over 10,200 people by 2026. More than half of the new roles will be based outside of London. Read more @TheTimes @tomhtimes https://t.co/3L10oBvdWz pic.twitter.com/oUUcf3csT8
— Hywel Ball (@HywelBallEY) April 5, 2022
Note on the dates: Project Everest started making the news in June of 2022 and fell apart in early 2023. Whomp whomp.
Here he is on LinkedIn in early 2022 talking about why former consultants who’ve left for industry should consider boomeranging back to consulting:
#lies
A year after the above LinkedIn post, EY UK told its people to expect smaller (or no) bonuses, “less generous” raises, oh and layoffs too for those in particularly contracted lines like financial services. And it’s been shit over there ever since.
This time last year, EY UK cut 150 people between legal and EY-Parthenon. So once again they’re dumping people right before Christmas. Nice.
Well they aren’t bad at making money for themselves. But it’s sure isn’t a good look when putting themselves out to be “business consultants”. They might need some consulting of their own.