In a significant shift reflecting current market conditions, EY has informed approximately 200 recruits set to start at its Parthenon division in the US that their start dates will be postponed until mid-2024. This delay is attributed to a slowdown in mergers and acquisitions (M&A) and private equity activity, which has affected revenue growth from advisory services this year. The postponement follows a broader trend among large consulting firms, which have also delayed start dates for new recruits hired last year. Notably, EY-Parthenon had previously pushed back start dates for its 2023 recruits twice, indicating ongoing challenges in the sector. The firm is responding to slower than expected revenue growth from its advisory work, highlighting the impact of changing economic conditions on recruitment strategies [34126479].
The tech industry, particularly major players like Google, Microsoft, Meta, and Apple, has seen a decline in job offers, with a reported 200,000 jobs cut between 2022 and 2023 despite rising profits. The 'Amazon effect' has diminished, leading to a significant drop in MBA hires by tech companies from 18% in 2022 to just 10% in 2023. In contrast, the consulting sector has seen an increase in job offers, rising from 33% to 50%, as start-ups begin to offer positions in sustainability and artificial intelligence. Young job candidates are increasingly seeking companies that provide meaningful projects and flexible work environments, reflecting a shift in preferences towards impactful work and better work-life balance [fe0ebd9d].
A senior commercial banker at JP Morgan Chase believes that the wave of layoffs in big tech companies will inspire a surge of new start-ups in Ireland. This prediction aligns with the changing preferences of young job seekers who are now looking for meaningful work and socially responsible environments. The anticipated influx of start-ups is expected to contribute to job creation and economic growth in Ireland, leveraging the favorable business environment and access to talent [fe0ebd9d].
In addition to the delays in graduate start dates, EY is also cutting jobs in the US due to a slowdown in demand for its services. The job cuts will impact a limited number of people, and EY has committed to providing support for those affected. This move is part of EY's transformation strategy, focusing on areas where clients have the greatest needs. The consulting industry as a whole is facing a decline in demand, with clients postponing longer-term investments in an uncertain macroeconomic environment [fe0ebd9d].
EY's decision to delay graduate start dates is a proactive measure to ensure a high-quality onboarding experience for new hires amidst the ongoing pandemic and economic uncertainty. The firm aims to adapt to changing market conditions while continuing to provide valuable services in areas such as corporate strategy, cybersecurity, and sustainability [fe0ebd9d].