Layoffs have wreaked havoc in the global tech sector and the crisis has spilled over into other sectors including media and financial services. Firms including KPMG and McKinsey have also slashed a significant chunk of their workforce, and those who remain are haunted by uncertainty.
Accounting firm Ernst and Young has also joined the bandwagon, by laying off 3,000 employees, because of overcapacity.
Overhiring hitting more firms
The move to cut down its workforce by 5 per cent, comes days after Ernst & Young called off a split, which was meant to create a spinoff.
The new firm was slated to handle the firm's global consulting business, after regulatory concerns over its arm conducting audits fairly for clients.
Ersnt and Young also made it clear that the job cut is part of its own ongoing management, and not a result of recent reviews.
Overestimated recovery?
Apart from overcapacity, the firm also cited high rates of employee retention as a factor behind the layoff.
Along with other big four consulting firms globally, Ernst and Young also went on a hiring overdrive after the pandemic, eyeing a recovery.
But like tech firms and companies in other sectors, they are now struggling with a bloated workforce and high salary costs.
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