Big Four Accounting Firms lay off workers; Who are at risk?

Big Four Accounting Firms Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and Klynveld Peat Marwick Goerdeler (KPMG) have fired many workers in the United Kingdom (UK) following the pandemic hiring.

Earlier this month, Deloitte, a British multinational accounting firm, laid off around 800 workers in the UK. Deloitte blamed the layoffs on economic uncertainty. 

According to analysts, EY, PwC and KPMG have also planned to lay off workers. Some employees can get a notice of termination in the future. Who all are at risk? Why did the companies start the layoff?

Why did Big Four layoff workers?

Recruiters said that Big Four started the layoffs because these companies did the excessive hiring after the COVID-19 pandemic. Recruiters and analysts also said that the companies took the decision because of a slowdown in workers leaving the big consultancies.

According to a report by the Financial Times, citing James O’Dowd, founder of Patrick Morgan, Big Four had too many workers in some areas. James O’Dowd said that the four companies overhired workers after the pandemic. 

Richard Houston, chief executive of Deloitte UK, said that the company needed a “targeted restructuring” in some areas. The recent layoffs in Deloitte affected workers in consulting, financial advisory, and risk advisory departments. 

Richard Houston said in a statement, “We announce some targeted restructuring across our businesses.”

Who all are at risk?

Large-scale layoffs can affect a lot of workers in Deloitte, KPMG, EY and PwC. People in consulting, financial advisory and risk advisory businesses are at risk. 

Previously, KPMG announced a redundancy exercise to lay off 125 workers or 2.3 per cent of UK consulting staff. KPMG has declined to announce its further plan about the layoffs. However, some people can lose their jobs in the future.

The layoffs can be conducted because of the slowdown in the current financial year.