EY axes 30 partners in biggest executive purge in decades
Ernst & Young (EY) is set to implement one of its most substantial partner redundancy initiatives in decades, aiming to safeguard profitability amid a sustained downturn in professional services demand.
The firm plans to eliminate approximately 30 partner positions, predominantly within its consulting division, according to individuals familiar with the matter.
Anna Anthony, EY’s managing partner for the UK and Ireland, communicated this strategy to partners earlier this month, though specific figures were not disclosed.
EY, employing around 20,000 individuals across the UK, offers a spectrum of services, including auditing major corporations, advising on corporate transactions, business restructuring, and tax consultancy.
Similar to its Big Four counterparts—PwC, KPMG, and Deloitte—EY operates under a partnership model. Its 894 equity partners jointly own and manage the firm, sharing annual profits, while 757 non-equity partners do not participate in profit-sharing.
The anticipated redundancies are primarily attributed to a decline in demand for consulting services. During the pandemic, companies heavily invested in consultancy to navigate challenges such as remote work transitions and supply chain disruptions, leading to significant sector growth.
However, rising inflation and interest rates have prompted clients to reduce expenditures on corporate advisory services, resulting in decreased workloads and subsequent job cuts across the Big Four firms.
In October, EY reported a 5% decline in average partner profits, reducing the figure to £723,000 for the fiscal year ending in June. Consulting revenues experienced a 4% decrease, while overall revenues saw a modest 3% growth.
To maintain profit margins for remaining partners, the firm has been adjusting its partnership structure, including reducing hiring as senior partners retire and, in some cases, transitioning equity partners to non-equity roles.
Notably, EY’s partnership decreased by approximately 50 members last year, and PwC saw 123 partners depart in 2024, partly due to early retirement initiatives.
This planned reduction of 30 partners represents one of the most significant single cuts to EY’s senior ranks in recent history. Such measures underscore the challenges faced by major professional services firms as they adapt to evolving market conditions and client needs.
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An EY spokesperson stated, “We continually assess the needs of our business and make adjustments when required,” reflecting the firm’s ongoing efforts to align its operations with current market realities.
The broader consulting industry is experiencing similar trends, with firms recalibrating their workforce strategies to balance profitability and service delivery in a fluctuating economic environment.
