November 26, 2020

Tracker: These Accounting Firms Have Either Cut Jobs or Pay (or Both) During the COVID-19 Crisis

[Updated on Oct. 19 with information about BDO USA.]

In case you haven’t noticed, there have been a lot of salary reductions and jobs lost throughout public accounting over the past couple weeks as a result of the coronavirus pandemic. And it sucks.

So we’ve started compiling a list of firms that have resorted to cost-cutting measures like layoffs, pay cuts, and furloughs during this crazy and uncertain time. We’ve also included firms that have recently cut or deferred bonuses, raises, and promotions.

This list is far from comprehensive and we’ll continue to update it as more news is made available. If you have a tip about layoffs, pay cuts, or other cost-cutting measures at your firm, or if you see something reported below that needs clarification, email or text us using the information at the bottom of this post.

Andersen

  • 5% to 14% pay cut for employees making less than $100,000.
  • 15% to 19% pay cut for employees making between $100,000 and $200,000.
  • 40% to 50% pay cut for employees making more than $700,000.
  • Employees reimbursed for pay that was cut through June 26. [NEW]
  • Employees reimbursed for pay that was cut through Aug. 21 and pay cuts have been halved. [NEW]

Aprio

  • Approximately 40 people laid off.

[Source: Tips to GC]

Armanino

  • 8% of firm’s workforce laid off.
  • 10% pay cut for employees firm-wide.
  • Partner distributions reduced.
  • Some employees furloughed.

Baker Tilly

  • Layoffs (unconfirmed how many; told they were performance-based).
  • 20% to 30% pay cut for partners.

Berdon

  • 15 people laid off.
  • April partner distributions deferred.
  • Third-party outsourcing group based in India let go.

BDO Canada [NEW]

BDO UK

  • 700 employees furloughed (470 first-year trainees and 230 support staff).
  • 25% reduction in partners’ monthly pay.

[Source: The Times]

BDO USA

  • 5% to 10% pay cut for staff from May 1 until Aug. 1 (May 16 until Aug. 1 in St. Louis).
  • Raises and promotions deferred until Nov. 1 at the latest. [NEW]
  • 3% of BDO USA Advisory workforce let go the week of July 13. [NEW]
  • Pay cuts officially ended with employees’ Aug. 14 paychecks. [NEW]
  • Employees to receive their pay that was cut from May 1 to Aug. 1 as of Dec. 15. [NEW]

BKD CPAs & Advisors

  • Layoffs (unconfirmed how many; told they were performance-based).
  • Partners taking pay cut (unconfirmed how much).
  • Annual raises could be smaller this year.

Burr Pilger Mayer BPM

  • Layoffs (unconfirmed how many; told they were performance-based).
  • Some staff furloughed.
  • 25% pay cut for partners.
  • 4% to 10% pay cut for staff.
  • Some employees may be urged/forced to take a part-time schedule.

[Source: Tips to GC]

Carr, Riggs & Ingram

  • 10% pay cut for staff, 20% for income partners, and 30% for equity and retired partners, from May 1 to Sept. 30 Aug. 31. [NEW]

Cherry Bekaert

  • An estimated 50 to 70 people were laid off.
  • 5% pay cut for staff/seniors, 10% for managers, 12.5% for senior managers, and 15% for directors.
  • Estimated 15% reduction in partner draws.

Citrin Cooperman

  • 5% to 10% of firm’s workforce laid off.

[Source: Tip to GC]

CliftonLarsonAllen

  • 10% pay cut for employees firm-wide from May 1 until Dec. 31 Oct. 31 Aug. 1. [NEW]
  • 25% reduction in partner distributions from May 1 until Dec. 31.
  • Employees to receive their pay that was cut from May 1 to Aug. 1 as of Oct. 19. [NEW]

CohnReznick

  • Between 50 and 120 people let go (told they were performance-based).
  • Between 50 and 90 people furloughed beginning on May 1, ranging from 30 to 120 days (with benefits).
  • 7% to 10% pay cut for all staff from June 1 until Sept. 30.
  • 25% cut in partner pay.
  • Mandatory 37.5 hours PTO must be taken before July 31.
  • Salary adjustments or bonuses connected to summer promotions deferred to the fall.

Crowe

  • Between 300 and 400 people were laid off.
  • 15% pay cut for partners.
  • 10% pay cut for officers.
  • No employee bonuses.
  • No annual salary increases.
  • Virtual summer internship program from June 1-30.
  • 401(k) plans: Firm is not contributing the age-based portion, but Crowe is continuing with the 2.5% maximum match.

Deloitte Australia

  • 7% (about 700 people) of the total workforce was let go. [NEW]
  • 20% pay cut for employees for five months.
  • 20% pay cut for non-equity partners.
  • Up to 25% reduction in equity partner pay.

Deloitte Canada

  • An estimated 3% to 4% of the total workforce, across all service lines, was let go (Range: 400-500 people).
  • Reduction in equity partners’ compensation (rumored at 30%).
  • 179 internal services staff laid off on July 22; 188 redeployed from internal to external client services. [NEW]

Deloitte Ireland

  • 30% reduction in partner pay.

[Source: Irish Times]

Deloitte UK

  • Approximately 20% reduction in partner annual earnings.
  • Partner profit distributions deferred.
  • No annual salary increases.
  • Bonuses reduced and deferred until later this year.

[Source: Reuters]

Deloitte US

  • 5% of the total workforce firm-wide will be let go starting the first week of June.
  • 1.5% of remaining staff will be on a reduced work schedule and having reduced pay.

Dixon Hughes Goodman

  • 17% of workforce being furloughed for 90 days starting on May 1, will still receive health benefits.
  • 5% to 15% pay cut for all staff beginning May 15 and ending in early September.
  • No bonuses this year.
  • Firm stopped contributing to employees’ 401(k) plans on April 1.
  • Partners taking pay cut (unconfirmed how much).
  • 125 employees, nearly all of whom were furloughed, are being laid off effective Aug. 1. Remainder of furloughed employees will return to work on Aug. 1. [NEW]

EisnerAmper

  • 44 people laid off (received severance package and three months of COBRA).
  • 20 employees have been furloughed.
  • Partners forgoing monthly compensation unless they meet billing/collection targets.

Elliott Davis

  • 10% of firm’s workforce laid off.
  • 8% pay cut for employees firm-wide for three months.
  • Partners taking larger pay cut (unconfirmed how much).

EY Australia

  • 20% pay cut and hours cut for staff and partners who are underutilized.
  • Recruitment freeze.
  • Discretionary spending cut.

[Source: Australian Financial Review]

EY Canada [NEW]

  • Layoffs (unconfirmed how many; told they were performance-based).
  • A second round of layoffs (unconfirmed how many, told they were COVID-19 related), particularly in EY’s offices in Ontario, started in mid-September. [NEW]

EY Ireland

EY Israel [NEW]

  • About 5% of the workforce, or between 90 and 100 employees, are being laid off.

EY Mexico [NEW]

  • Job cuts (unconfirmed how many).
  • 15% pay cut for employees.
  • 30% pay cut for partners.
  • No raises or performance bonuses for 2020.

EY Netherlands

  • Issued a capital call to its partners; total contribution equaled tens of millions of euros.
  • No salary raises for employees; no promotions. [New tip to GC]

EY UK

  • 20% reduction in partner profits.

[Source: City A.M.]

EY US

  • No performance-based bonuses in FY 2020.
  • Partners taking deferred or lowered distributions.
  • Senior manager promotion bonuses eliminated (had been $8,000).
  • Manager promotion bonuses lowered from $6,500 to $5,000.
  • Promotions for partners, principals, executive directors, and directors deferred until Oct. 1.
  • Midyear promotions (April/May) pushed back and will be re-evaluated.
  • Hiring freeze.
  • Virtual summer internship program from July 6 to Aug. 7.
  • International Intern Leadership Conference in Orlando canceled.
  • Only promoted employees who are going up in rank (i.e., staff 2 to senior 1; senior 3 to manager) are receiving a raise (promotion portion, not merit portion) in 2020. [NEW]
  • Layoffs (unconfirmed how many) on Aug. 31-Sept. 1 impacting tax, risk, and assurance areas throughout U.S. [NEW]

[Additional sources: Tips to GC]

Friedman

  • 52 people laid off across all service lines (audit, tax, consulting).

Grant Thornton Canada

  • Layoffs (unconfirmed how many) at offices in Toronto, Markham, and Mississauga, Ontario.

Grant Thornton UK

  • 70 people from tax and consulting were let go. [NEW]
  • 300 employees’ pay and hours cut.
  • 150 staff agreed to voluntary reduction in hours and pay cut of up to 40%.
  • Deferred profits dividend due to be paid to partners this summer.

[Source: Financial Times]

Grant Thornton US

  • 25% reduction in monthly draws for partners and principals through July 31.
  • 20% pay cut for managing directors on firm’s National Leadership Team through July 31.
  • Partners and principals will contribute to a capital call.
  • Job cuts (unconfirmed how many; told they were performance-based).
  • No raises or bonuses (only those promoted will be eligible for raises).
  • Layoffs in advisory, ICS, and workplace solutions team (unconfirmed how many) on July 24. [NEW]

Grassi & Co.

  • 11 people laid off from New York City office.

[Source: Tip to GC]

KPMG Australia

  • 200 people laid off.
  • 20% pay cut for staff who make more than $62,000.
  • 17% reduction in pay of equity partners. UPDATE: Partners took a 12% pay cut. [NEW]

KPMG Canada

  • Layoffs in the Toronto, Calgary, and Vancouver areas, unconfirmed to be around 200 people let go.
  • Approximately 25% reduction in partner draws.

[Additional source: The Globe and Mail]

KPMG Ireland

  • Up to 40% cut in partners’ overall remuneration for a period of 12 months.

[Source: Irish Times]

KPMG New Zealand [NEW]

  • Staff were asked to reduce salaries by 15% in April. Pay cut has since ended.
  • Partner draws were cut by 20% to 40%.

KPMG UK [NEW]

  • Nearly 200 employees (about 100 in consulting and about 100 in internal business services) are being laid off.
  • Firm considering reducing pension contributions to 4.5% of salaries.

KPMG US

  • About 350 people in Digital Nexus and about 40 people in marketing were laid off.
  • 50% reduction in draws for partners through Sept. 30.
  • No variable compensation in FY 2020.
  • Hiring freeze.
  • Reduced capital investment.
  • No Encore awards in FY 2020.
  • No summer gifts to employees in FY 2020.
  • Pension and 401(k) contributions are being cut in half. [NEW/Tips to GC]
  • Executive assistants have been asked to take a severance package by Sept. 22, apply for open positions in ASK, or stay on as “field EAs.” [NEW]
  • Approximately 1,400 employees (396 in advisory, 194 in tax, 189 in audit, and 600+ non-client-facing staff) were laid off on Sept. 29. Also, 125 tax employees will receive pay cuts. [NEW]

Marcum

  • Layoffs (unconfirmed how many; told they were performance-based).
  • Bonuses deferred until after June 30 but not canceled.
  • Everyone must take half of PTO by July 31.
  • Employees asked to go on PTO, sabbatical, or even voluntary unpaid time off with benefits.

Marks Paneth

  • Layoffs from all offices (unconfirmed how many; told they were performance-based).
  • 10% to 30% in monthly distributions for partners.
  • Consideration of bonuses and raises deferred until Jan. 1, 2021.
  • Employees are required to use no less than one week of their accrued PTO prior to June 30.

Mazars Ireland

  • 25% cut in partner earnings.

[Source: Irish Times]

Mazars UK

  • 200 staff furloughed.
  • Partners’ pay will be cut by a quarter.

[Source: Financial Times]

Mazars USA

  • About 85 people, or 10% of the workforce, were laid off.
  • 5% to 10% pay cut for staff effective May 1.

MGO

  • Layoffs (unconfirmed how many).

[Source: Tip to GC]

Moss Adams

  • 20% income reduction for partners through December 2020.
  • 5% to 20% salary reduction for staff beginning May 15, to be reassessed in four months end July 15. [NEW]
  • 370 employees subject to 90-day furlough.
  • 240 employees subject to reduced work schedules for 90 days.
  • 103 of the 370 furloughed employees were laid off on June 25. [NEW]

Nichols Cauley

  • No partner disbursements.

[Source: Tip to GC]

Plante Moran [NEW]

  • Layoffs (unconfirmed how many; told they were performance-based).
  • Partners taking pay cut (unconfirmed how much).
  • No raises for FY 2020.
  • Pay freeze.
  • Bonuses paid out at 75%. (Bonuses now paid out at 100% [NEW].)
  • No 401(k) match in 2020. (401k match has been completed by firm [NEW].)

Prager Metis

  • Layoffs (unconfirmed how many).
  • 20% pay cut for staff across the board.
  • Furloughs.

PwC Australia

  • Nearly 5% 3% (about 400 250 people) of the total workforce was let go. [NEW]
  • Up to 40% pay cut for underutilized staff.
  • 30% to 40% cut in partners’ annual income.
  • Four-day workweek from May 1 until the end of June, with corresponding reduction in pay.
  • Three-day workweek for certain teams with low utilization.
  • Raises and bonuses deferred for all partners and staff.
  • New partner admissions delayed from July 1 until Jan. 1, 2021.

PwC Brazil [NEW]

  • Upwards of 600 employees laid off on July 9.

PwC Canada [NEW]

About 5% of workforce laid off the week of July 13.

PwC India

  • 25% pay cut for executive directors and partners.
  • Raises, bonuses, and promotions deferred for all staff.

PwC Ireland

  • 30% pay cut for partners.

[Source: Irish Times]

PwC Malta

  • Approximately 10 people laid off who recently joined the firm (mostly migrant employees who migrated to Malta) but due to COVID-19 were let go.

[Source: Tip to GC]

PwC Switzerland

  • Promotions and raises deferred.
  • 20% salary reduction for partners.

[Source: Inside Paradeplatz]

PwC UK

  • Raises, bonuses, and promotions deferred for all staff.
  • Annual partner payouts may be withheld.

[Source: City A.M.]

PwC US [NEW]

  • No base salary increases but those who are promoted will get a raise. There will be a base salary freeze for FY 2021. [NEW]
  • FY 2020 bonuses will still be paid out.
  • Newly promoted managers will still get their manager milestone bonus.
  • Partners are taking a reduction in distributions.
  • Full-time offers and internships will be honored.
  • Job cuts (unconfirmed how many; told they were performance based). [NEW]

RSM Canada [NEW]

  • Layoffs (unconfirmed how many).
  • Raises only given to employees receiving a promotion.

RSM US

  • Layoffs on April 21 (unconfirmed how many; told they were performance-based).
  • Partners are taking a decrease in expected earnings.
  • Hiring freeze.
  • Virtual summer internship program.
  • Approximately 250 employees let go on May 18 in both external (audit, tax, consulting) and internal (HR, recruiting, L&D) services. One-third of talent acquisition team furloughed for two to three months without pay (still will receive benefits).
  • 5% raises only for those getting a promotion. Firm’s portion of employee bonuses funded at 70%. [NEW]
  • Firm announced on Aug. 20 it will be increasing salaries on Nov. 1 after suspending year-end raises back in May. [NEW]

RubinBrown

  • 51 employees furloughed for approximately 90 days; furloughs will be unpaid, but affected employees will still receive benefits.
  • Firm-wide compensation adjustments and bonuses deferred from May to December.

SingerLewak

  • Approximately 25% of staff laid off on April 3.

[Source: Tips to GC]

Weaver

  • 60 to 70 people laid off across multiple service lines and offices.
  • 50% of partners’ cash distributions temporarily delayed.

Whitley Penn

  • Layoffs (unconfirmed how many).
  • Partners’ pay was cut (unconfirmed how much).

Wipfli

  • 5% of staff will be laid off.
  • Furloughs are being considered.
  • Partners’ pay was cut (unconfirmed how much).

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