Some people let go at McGladrey. Heard it was like 15 [UPDATE: SEE BELOW] from the corporate marketing department and a few others. Some head scratchers going on. Moved people around including a few changes that have people baffled. People who have no business being promoted promoted.
Earlier in the summer, we heard a rumor about layoffs in the Northern Plains region and at the time our tipster said that the firm “spread[s] the terminations over months instead of doing them all at once,” which has more or less become the norm. ANYWAY, we’re trying to get some more info from tipsters and the firm but in the meantime, drop your knowledge below or get in touch.
UPDATE: A McGladrey spokesperson has informed us that the firm did recently “announce a restructuring of our marketing department to better align with the organizational structure and business objectives outlined by our firms more than a year ago,” adding, “This resulted in the elimination of 11 positions within the marketing organization.”
The head scratching was not specifically addressed. Carry on.
Contributor note: As can happen when assembling posts for a tabloid publication late at night after too many beers and not enough sleep, we bumbled some simple facts on this one. We appreciate an astute reader reaching out to correct us and will spend the remainder of the day in the punishment corner thinking about what we’ve done.
It wasn’t that long ago so all of you should still have PwC’s recent Tampa “scandal” fresh in your minds but in case you need a refresher: 390 PwC employees in Tampa were impacted by a restructuring which left some out of a job and others i h other companies. PwC fired a little under 500 IT people in Tampa (moving those jobs to an outsourcing firm in India) and that pissed everyone off so to be nice, PwC decided to hire 200 new people and build a new $78 million office smack dab in the middle of Tampa (after hiring 487 employees in Florida for FY 2011). Isn’t that sweet? Well yes, it was, but that wasn’t the problem the press had an issue with. It was the fact that PwC was going to get $2 million (give or take a few pennies) in subsidies for doing it.
That didn’t go over very well (understandably) and as of yesterday, PwC had their Tampa lawyer – one Kenneth Tinkler – shoot a quick “oops, our bad” note to the mayor and city council stating they would no longer seek the $1.1 million “in incentive payments already approved by the City and County.”
Not the kind of firm to be accused of bitching out on a big deal like this, PwC will move forward with the plan to build in Tampa’s Westshore and hopes to have its entire Tampa workforce settled in there by 2013.
“I was very surprised to hear that they were turning down the incentives,” said Tampa City Council member Mary Mulhern, who apparently exercised professional skepticism during the subsidy approval process. “But I am very glad that they have reiterated their intention to stay here.”
See, what happened was apparently the Tampa/Hillsborough County Economic Development Corporation got the facts wrong PwC fudged the facts a bit when it applied for the money on PwC’s behalf (as is standard), saying it needed the incentives to keep 1,633 jobs in Tampa. At the time, Tampa City Council members and Hillsborough County commissioners didn’t actually know the unnamed financial services firm applying for the incentives was PwC. According to the St. Petersburg Times, a written application made on the firm’s behalf said it had competing offers from South Carolina, India, Singapore and Argentina. But PwC denies that it ever planned on moving any jobs out of the area. “We never considered moving those 2,000 jobs out of Tampa,” the firm’s Florida market managing partner Mario de Armas told the St. Petersburg Times.
Update: Mario later corrected his earlier statement by telling the St. Petersburg Times “PwC has openly communicated to the Tampa Hillsborough Economic Development Corp. that when it originally evaluated potential sites for the firm’s new Enterprise Solutions Center, the firm was considering either a short-term lease renewal in the existing building in Tampa or constructing a building in Tampa with a long-term lease commitment. Although we did not contemplate an immediate move of 2,000 jobs out of Tampa, a short-term lease arrangement inherently leaves open the long-term question as to where our Enterprise Solutions Center would be located. Instead, our decision to invest in a new building demonstrates a sustained, long-term commitment to the Tampa area. PwC was forthright and consistent in its communications with Florida’s state and local economic development officials throughout this process, and so now we are very much looking forward to our partnership with the greater Tampa community and to maintaining and potentially increasing our work force in Tampa.”
The entire letter from their lawyer is included here for your reading pleasure:
Remember when PwC laid off 500-ish 470 people in the Tampa area last year? The townies weren’t impressed and the local press, including the St. Petersburg Times, was all over the firm about it. At the time, PwC insisted that they would create more jobs in the area to make up for things. Frankly, no one took them seriously and probably chalked it up to “something PR has to say.” So it was a nice surprise to learn that the firm is not only hiring 200 new people but they’re spending $78 million on a “build-to-suit building.”
Typically when these kinds of things happen, the local and state governments like to subsidize a bit of the project and this situation is no different. The firm is reportedly receiving $2 million but a source at PwC, who wants to keep their identity secret because DUH, told me that it’s actually closer to $1.2 million. It consists of approximately $800k and some change from the state of Florida and $1.1 million (yes, I know the math doesn’t work you twerps, so save it, they didn’t have exact numbers) from the city and county, the latter being part of the Premier Business Bonus Program.
Rather than simply say “Thank you, PwC for bestowing your autumnal hues on our otherwise hot, sticky, green and tan town…oh, and the jobs are okay too,” the Tampa Bay Businees Journal is poking around the “$2 million” in subsidies. The focus of the story caused our source to be a little perplexed since, you know, the firm is spending nearly $80 million and hiring 200 people. Not to mention the people that will build the $78 million whathaveyou. Did they think the current PwC employees were going to bring their tool belts and slap together some framing and drywall? Plus, the firm doesn’t get the $2 million $1.2 million unless they spend the $78 million and they hire the 200 people. 197 simply won’t do (I asked).
Does it make up for the 500 layoffs? Maybe not. But a story about subsidies that probably wouldn’t pay for Dennis Nally’s annual travel? There’s far more interesting things going on in Florida. I assure you.
Goldman Sachs Group Inc. […] Chief Financial Officer David Viniar said the investment bank could layoff 1,000 employees globally as part of $1.2 billion in cost cuts.
During a conference call with analysts, Viniar said the potential headcount reduction is “as we sit here now and, of course, things can change,” adding that such layoffs would “come over the course of this year.” Viniar said the cuts could be “some senior, some junior people,” but “it’s really more dollar focused than head focused.” [MW]
Welcome to the I-still-don’t-know-who-Casey-Anthony-is edition of Accounting Career Emergencies. In today’s edition, a tax senior was just laid off from his local firm because of a “lack of work.” Can he jump to a regional or a Big 4 firm without any trouble?
Is your latest raise an insult? Need some rumors debunked? Thinking of giving it all up for your dream of creating the world’s best burrito? Email us at advice@goingconcern.com and we’ll give you the best average advice you’ve ever gotten.
Back to ranks of the funemployed:
Dear Going Concern,
I’m a tax senior and was just laid off from a local accounting firm with about 50 employees due to a “lack of work.” The firm has been losing clients and a lot of the staff has been sitting around lately with nothing to do.
How difficult would it be to move from a small, local firm to a larger, regional one or the Big 4? Thoughts?
Sincerely,
A Loyal Reader
Dear Loyal Reader,
Sorry to hear that you got the axe. That’s never a good feeling. If lots of other staff are sitting around twiddling, they’ll probably be joining you before you know it. But forget about them; you’re thinking about your options which is good, so let’s try and sort this out.
You’re a senior associate, so that’s a plus. Most firms, regardless of size, are hurting for seniors so that puts you in a good spot. You’re also in tax which requires a more specialized knowledge base than audit, so that’s a benefit too. Depending on what kind of clients you have served (I’m guessing individuals and small businesses), your best bet is start with the regional firms in your area. Odds are your experience will match up better with a regional firm, so they’re more likely to take an interest in you.
As for making the jump Big 4, this is a little trickier. I’m not saying it can’t be done, as I made the jump myself but it’s really dependent on your experience. If you’ve mostly prepared run-of-the-mill 1040s, chances are they won’t give you much of a look. On the other hand, if you have a lot of work in a specialized area (e.g. transfer pricing or M&A) on your résumé that will catch their eye.
Bottom line is that if you can find a firm that offers services and has clients that match up your experience, you’ll be a good fit. Good luck.
Nationally, after three consecutive years of declines, CPA firms “finally” are projecting positive growth between 3% and 4%, said Allan D. Koltin, CEO of Koltin Consulting Group, a Chicago firm that specializes in the accounting profession. The industry had enjoyed enormous growth and enormous hiring between 2003 and 2007, Mr. Koltin said, but the recession year of 2008 ushered in a dark chapter.
Many firms instituted hiring freezes and made cuts. Most of the 100 largest firms let go of anywhere from 10% to as many as 20% of their accountants, he said. “It probably was the worst bloodbath of layoffs that the accounting profession has had in well over a couple decades,” Mr. Koltin said. “The bloodbath is definitely over. Firms all over the country, Cleveland and everywhere, for the first time are doing serious hiring after a serious drought.” [Crain’s]
The Allen interview covers all kinds of fun stuff so let’s get to it, starting with those pesky regulators:
Some of us are still getting comfortable to having the PCAOB sticking their beak into audits:
The public accounting arena has indeed changed a lot. It’s now a regulated profession with oversight that’s provided through the Public Company Accounting Oversight Board. We are still, both the regulator and the profession, trying to work through that, with the common objective of improving audit quality. We’re learning how to work within a regulated environment that some years ago we just didn’t live with.
None of the firms chose to be the “Big 4” it just sorta worked out that way:
Just last week, we were talking at our global board meeting about how the profession got narrowed down to this number to begin with. The last reduction wasn’t the choice of the profession with [Arthur] Andersen out of business.
And speaking of four, she’s pretty comfortable with that number:
You have to have concentration of enough business to service the clients properly. If you spread that across eight firms, there just isn’t enough that supports that kind of that activity. In some of the major countries, the additional number of firms make sense, but when you look at it across the world, it doesn’t work. We’re not opposed to the competition; there are next-tier firms that are very good, and we encourage them to be in the mix in terms of proposal opportunities. It’s healthy. But the reality is the concentration will and probably should continue.
Term limits have somewhat led to SA’s retirement but there’s at least one person who’s especially happy about her quitting early:
I’m approaching the end of my second four-year term as chairman. We have a limit of two terms. While I’m not at mandatory retirement age yet, I concluded that it’s a really good time to make this move. I’ve had a fabulous 38-year career. But I’m also very comfortable with the transition leadership and the state of the firm. It’s a good time for me to leave at the top of my game. My husband is looking forward to spending more time with me.
FINS went ahead and asked Allen about the leadership election process, even though they already knew how the process went down.
We have a nomination process that we undertake. We interview through a nominating committee chosen by the board. They interview about 1,300 partners for their input on the type of attributes they’d like to see in the chairman and CEO positions. Then the committee interviews some individuals who match up with those qualities and ultimately proposed the nominated person.
One of the biggest challenges Allen has faced as Chairman was dealing with this clusterfuck of an economy. Luckily for the Green Dots out there, Deloitte management saw this coming and was able to save a bunch of you:
We were a little ahead of the game in anticipating the downturn that allowed us to prepare well for the difficult times to come. We had some reductions in our workforce, but they were not as substantial as they might have been had we not appropriately planned for the downturn.
And as a high-flying executive, there has to be coping mechanisms:
[Julie Steinberg of FINS]: How do you handle all the travel you do?
[Sharon Allen]: I drink a whole lot of water. I’m also fortunate to be able to adjust to time zone changes relatively easily. I work on domestic flights, and I do take my iPod and my computer.
JS: What are you listening to these days on your iPod?
SA: I’m a country music fan.
Chesney just came to mind for some reason (FYI Sharon: I can get you into the sold-out Red Rocks show, so reach out if you’re interested). But maybe she’s more of Toby Keith person, I can’t possibly know not having had the pleasure of seeing what ended up on the cutting-room floor. You’re invited to speculate as to artists (I’m pulling for Willie Nelson myself) and react to anything else you see above.
Important lesson for any Big 4, et al. Twitter captains out there:
A Chrysler contractor who posted an obscene tweet on the Chrysler brand’s official account says he’s sorry his four-letter flub has cost 20 people their jobs.
Scott Bartosiewicz’s Twitter posting from last week read: “I find it ironic that Detroit is known as the (hash)motorcity and yet no one here knows how to (expletive) drive.” It was meant to appear on his personal account, but Bartosiewicz mistakenly sent it to the Chrysler brand’s feed while he was stuck in traffic on Interstate 696.
The error resulted in the 28-year-old Ferndale resident’s dismissal and contributed to Chrysler’s decision not to renew its contract with Bartosiewicz’s employer, New Media Strategies, a Virginia-based marketing firm that now is putting about 20 local employees out of work.
It’ll be a miracle if this guy sees this year’s Final Four.
Last week we were tipped about layoffs that were communicated to PwC’s Global Best Practices (“GBP”) unit on January 13th. The GBP was purchased from Andersen back in the early Aughts and became a part of PwC’s Knowledge Services Organization which was developed as a part of Internal Firm Services.
Global Best Practices, as the name indicates, developed “best practices” that were either for sale to third parties or was used by PwC professionals to share with their clients.
Our source, a former Knowledge Services Organization employee gave us the initial scoop:
[I]t’s somewhere between 27 and 42 people, depending on how you do the math – there are some contractors. Most of the staff is based in Tampa, as part of the KSO. They have a month, then a package. Some are still in Chicago, where the GBP staff used to be based – the moved them all to Tampa about five years ago when PwC started up the whole Knowledge Services Organization plan.
Subscriptions to the site are way down and apparently the cost-benefit analysis didn’t justify keeping the employees, even though many of them had been around for many years.
We checked with a source within PwC who clarified/solidified some of the tip: simply put, the GBP product is being discontinued and it will affect 24 total jobs, sixteen in Tampa and eight in Chicago. As our original tipster mentioned, there are some outside contractors that aren’t included in those numbers. The separation date for those affected is February 25th and employees are being paid through the 28th. From there, a severance will be provided, depending on the individual’s position and tenure with the firm. All employees that are affected are being encouraged to apply for other jobs inside the firm.
This is second instance of layoffs by PwC in the Tampa area, following the 470 cuts announced last July. Many of those layoffs – 280 to be exact – were effective December 31st. We’ll keep you updated with any further details.
Fyi- I’m forced to write this on my mobile so anyone that notes typos can piss off.
Anyhoo, for whatever reason, the KPMG beat is awfully hot today. This latest scoop we have is the unfortunate news that layoffs have reared their ugly head in Monty:
Caleb,
No chatter on the ~200 layoffs at KPMG IT support staff in Montvale this past Friday whose positions went to IBM outsourcing?
Oddly enough, we did hear about this just yesterday and hadn’t had the time to check it out. Now that we’ve been spurred into action, this confirms the original tip we received about the IT staff and that the work was going to IBM. This is the first news we received about the staff in Montvale, the original news we received was with regard to the New York office, a staff of approximately 17, we were told.
These in-house IT layoffs feel oddly familiar to the cuts made by PwC late last summer, who also planned to outsource those positions. P. Dubs also stated that they would offer some professionals other opportunities within the firm and would be creating a number of new jobs in the Tampa area, where those cuts occurred. So far there hasn’t been any indication that KPMG was doing something similar.
A message with KPMG spokesman Dan Ginsburg’s office was not immediately returned. We’ll keep you updated with any further details.
2010. What a year, amiright? It got off to a bit of a rough start after our facelift but as the year went on, things stayed interesting…most of the time. Anyway, since most of you aren’t getting Jack Squat done this week, let’s take a look back at the year that was.
1. Compensation – Shocking revelation here, we realize but – YES! – it’s true, red about most in 2010. After two years of disappointment, the Big 4 and the aspiring “Bigs” (Grant Thornton, BDO, McGladrey) all returned to merit increases and bonuses this year. PwC shot out of the gate with Ernst & Young keeping pace while KPMG remained steady but slightly behind. Deloitte, lagging behind, made a late charge with the announcement of a mid-year adjustment, which may or may not have set off a rash spreading amongst the other firms to provide bonuses throughout their fiscal year-ends. Was it a successful 2010 on the compensation front? Some say “yes,” some say “no,” but there’s little doubt about what keeps your attention.
2. PwC Email Hottiegate – Unless you were in a coma during the second week of November, you were aware of the email that listed the top 10, errr 13, new female associates that came out of PwC in Ireland. The gents who passed around the list weren’t so concerned with using work email to give the ladies the Letterman treatment and the Irish brass didn’t take too kindly to the “tradition.” This story dominated our pages for a few days and the last we knew, a total of five employees had been suspended, the women weren’t planning on lawsuits and Adrienne gave her point of view (as a member of the fairer sex).
5. Large firm vs. Small firm – An anonymous reader submitted an essay on the main differences between life in the Big 4 (and aspiring Bigs) life and that of the lives working in the smaller firms. Most have wondered what life would be like in their bizarro public accounting existence and some have actually lived it. There are pros and cons to each but life at the small firm is decidedly different.
6. An auditor’s life:
7. Layoffs – 2010 saw fewer mass layoffs than the past couple of years but that doesn’t mean there weren’t spots of cuts here and there. Most notably were the nationwide cuts at McGladrey as well as the 500 cuts made by PwC in Florida. Grant Thornton was busy slimming down its exposure in smaller markets but layoffs were not always part of the “transition” as practices were often sold or employees were giving the opportunity to transfer. And last but not least, we learned that Deloitte claimed “our bad” on their cuts from May 2009.
9. PwC Houston Happy Hour – The team happy hour. Typically a festive event filled with free booze, laughs and the occasional awkward advance. The latter allegedly took form of a partner towards an associate this past summer in PwC’s Houston office that resulted in a odd pick-up line, a sloppy kiss (our vision) and then a knuckle sand. The latest we heard was there were multiple associates approached, the partner-in-question was still with the firm and that the associate(s) involved were shipped off to other engagements. So all is well in H-town. PwC never returned our calls, emails or singing telegrams on this story.
10. Accounting Career Drama – One of the most popular series on GC is the career advice that we throw out here and there. Everything from trying to quit nicely during busy season to defection amongst Big 4 firms to explaining why your fantasy football roster is constantly on your computer screen. We’re here to help you get through the purgatory that is your time on Earth so if you’ve got a problem and want advice, email us at advice@goingconcern.com.
If we missed any of your favorites, feel free to recall your fondest memories on this here site. As we head into the new year, here’s a friendly reminder of how to get in touch with us:
Velma Hart, the chief financial officer for Am Vets, a veteran services organization based in Maryland, said Monday in an interview with CNBC that she was laid off as part of the nonprofit’s effort to cut expenses.
“I want to focus on the positive and be optimistic,” said Hart, who lives in Upper Marlboro, Md. “And assume that somehow things will work out, that there’s an opportunity out there with Velma’s name on it that’s right around the corner.”
A positive outlook, we like this gal. We’re sure you’ll be back to the corner office in no time. One word of advice though when you’re in the hot dog aisle – Hebrew National is not kosher, not matter what the package says.
Remember when 
Goldman Sachs Group Inc. […] Chief Financial Officer David Viniar said the investment bank could layoff 1,000 employees globally as part of $1.2 billion in cost cuts. 
Nationally, after three consecutive years of declines, CPA firms “finally” are projecting positive growth between 3% and 4%, said Allan D. Koltin, CEO of Koltin Consulting Group, a Chicago firm that specializes in the accounting profession. The industry had enjoyed enormous growth and enormous hiring between 2003 and 2007, Mr. Koltin said, but the recession year of 2008 ushered in a dark chapter. 
Deloitte’s 
2010. What a year, amiright? It got off to a bit of a rough start after 
Remember? She was thisclose to