US accounting firm Grant Thornton LLP has announced its second round of layoffs, affecting 200 employees. This comes after the company previously cut about 300 jobs in May. The layoffs are expected to primarily impact advisory positions. Grant Thornton has now cut over 6% of its workforce in 2023, which is seen as an indication of management's concern about an impending recession. Other consulting firms, including Ernst & Young and BDO, have also reduced staff this year due to a slowdown in demand for their services. Meanwhile, PwC Australia will cut 338 roles, or more than 4% of its workforce, due to fallout from its tax leaks scandal and the economic slowdown. The scandal has caused advisory clients to shun the brand and auditing clients to reassess their relationship. PwC's consulting division revenue is down 40% since July. Globally, consulting firms have aggressively cut staff numbers.
Grant Thornton LLP, a major accounting firm, has initiated a second wave of layoffs, cutting an additional 200 jobs. The move reflects the industry's cautious navigation through an uncertain financial climate and has raised concerns about the broader implications for the U.S. economy. The layoffs come amid signs of a looming economic slowdown and the company's readjustment to shifting market demands. Grant Thornton confirmed the layoff of 200 staff members, following an earlier reduction of 300 jobs in May. The firm stated that the staffing changes reflect underutilization in certain business segments and specialty areas that they are exiting due to market trends. The layoff process began last week, coinciding with the firm's announcement of a fiscal high in revenue. Concerns about the economy have affected the consulting industry, with major firms downsizing due to reduced demand. Sources warn of a potential talent exodus from Grant Thornton, as employees seek new opportunities amidst uncertainty. [8f513ce9] [1b83d596]
PwC Australia is also facing layoffs, with plans to cut 338 roles, or more than 4% of its workforce. The job cuts are a result of fallout from the tax leaks scandal and the economic slowdown. The scandal has led advisory clients to distance themselves from the brand, while auditing clients are reevaluating their relationship with the firm. PwC's consulting division revenue has declined by 40% since July. The layoffs at PwC Australia are part of a global trend of consulting firms aggressively reducing staff numbers. [1b83d596]
Ernst & Young (EY) is implementing deeper partner cuts than usual, laying off dozens of partners across all U.S. businesses. The Big Four accounting firm is facing slowing demand for certain services and seeking to cut costs following its failed plan to break up the firm. The cuts are concentrated on the advisory side of the U.S. operation, affecting over 10% of partners in consulting and about 4% in strategy and transactions. The layoffs also impact the audit and tax arms of the firm. The cuts would result in more than 100 partners in consulting and over 30 partners in strategy and transactions being let go at both junior and senior levels. [cc6b960c]
The big four accounting firms (EY, KPMG, Deloitte, and PricewaterhouseCoopers) are starting to lay off partners in response to slower growth in 2023 and decreased demand for certain professional services. Ernst & Young (EY) is laying off dozens of U.S. partners, while KPMG had already cut 5% of its U.S. workforce, including partners. Partner layoffs are rare in the industry as firms generally have to buy out the partner's equity and make additional payments. The big four accounting firms depend on their consulting businesses for 43% to 66% of their global revenue, but the less-than-expected demand for consulting and transaction services is cutting into profit. U.S. worker exits at the big four firms are up 43% through October compared to the previous year. The firms are likely to continue looking for ways to save money while avoiding additional layoffs in 2024. [20acc432]
Recruitment firm Robert Walters has cut 220 jobs due to a slowdown in global hiring. The London-listed company reduced its total staff headcount to 3,980 from 4,200. The firm cited challenging macro-economic conditions across many of its markets as the reason for the job cuts. Net fee income dropped by 13% to £91.4 million in the final three months of 2023 compared to the same period last year. The company highlighted weak conditions in Australia, where income was down 27%. Despite the challenging conditions, Robert Walters remains confident in the long-term demand for its services. [924767cd]
Macquarie Bank's top earner, Nick O'Kane, will leave at the end of the month. O'Kane's departure comes as a surprise and raises questions about the bank's future direction. Macquarie Bank has been a major player in the financial industry, and O'Kane's departure may have broader implications for the bank's operations and strategy. [5ba0933b]
At least 150 staff members at the Australian Taxation Office (ATO) have been implicated in a GST fraud scheme on TikTok. The ATO is investigating the matter and taking appropriate action against those involved. The fraud case raises concerns about the integrity of the ATO and highlights the need for stronger measures to prevent such incidents in the future. [5ba0933b]
ANZ Bank plans to cut 170 jobs from its business banking teams. The job cuts are part of ANZ's ongoing efforts to streamline its operations and improve efficiency. The bank aims to reduce costs and adapt to changing market conditions. The job cuts may have an impact on the affected employees and raise questions about ANZ's strategy moving forward. [5ba0933b]
Grant Thornton, a major accounting firm, has announced its sponsorship of the OneStream Splash 2024 event in Las Vegas. The event, taking place on May 20-23, provides customers and prospects with the opportunity to network and learn about product innovations, marketing trends, and case studies. Grant Thornton will be hosting thought leadership sessions and will have an exhibit hall booth at the event. One of the sessions will focus on TMS International's transition from legacy HFM systems to OneStream and the benefits they experienced. Another session will discuss the integration of AI into the finance department and its transformative impact. In addition to the event, Grant Thornton offers upcoming webcasts and on-demand webcasts for those who missed previous sessions. The company provides assurance, tax, and advisory services to clients and is a member firm of Grant Thornton International Ltd (GTIL). [47c61c67]
Grant Thornton, a major accounting firm, is supporting Money Magnets Club, a nonprofit organization founded by Dr. Alexandra Arrington. The organization aims to provide financial literacy and entrepreneurship education to elementary school students. Money Magnets Club offers a six-session 'Kidpreneur-in-training' program where kids learn about money, budgeting, and different types of entrepreneurship. Grant Thornton's support includes funding, volunteers, and a platform to share the organization's story. Money Magnets Club collaborates with community organizations, schools, and financial services institutions to provide developmentally and culturally appropriate financial literacy skills to youth in Charlotte, North Carolina. The organization aims to expand its impact beyond the city. [6702f26a]