EY has confirmed that a round of redundancies will affect the financial consulting sector of the business, in the wake of decreased market demand for professional services.
Over 5% of the 2,500 staff employed in its financial services consulting practice will be axed, while the accounting giant has also warned its UK staff to expect less generous pay rises and smaller bonus pools.
This move comes after PricewaterhouseCoopers (PwC)—another major MBA recruiter—announced plans to cut pay increases and bonuses for some 25,000 of its UK employees.
As the world's third most prestigious accounting firm, according to Vault, EY is a top choice for MBA graduates.
Last year, the company boasted over 360,000 employees, thousands of which were business school hires, while those fresh out of an MBA were able to walk into starting salaries hovering around $175K. But an uncertain post-Covid economy is causing difficulty for the firm.
However, the company still remains a strong option for MBA hires. A spokesperson for EY has stated that the firm is still seeing double-digit growth, while most of its employees will see a pay rise this year on top of a variable bonus.