• EY is set to cut 150 UK consultancy jobs amid a fall in demand for advisory services.
• Big Four consulting firms have launched a number of small rounds of cuts in recent months.
• In October, EY reported its first annual drop in employee head count for 14 years.

EY is set to cut 150 jobs in its UK consultancy division as demand slows for advisory services.

The layoffs at the Big Four firm will affect senior consultants like managers, senior managers, and directors, The Times of London, which first reported the news, said.

"EY regularly reviews the resourcing needs of the business. Regrettably, proposals put forward in part of the UK consulting practice may result in a reduction of 150 roles," an EY spokesperson told Business Insider.

"A consultation process is now underway with those impacted by these proposals."

EY employs around 4,700 people in its consulting division in the UK.

Under UK law, all companies making more than 100 redundancies must carry out a consultation for at least 45 days before dismissing employees.

At the same time as the cuts, Benoit Laclau, the managing partner of EY's consulting business in the UK and Ireland, is stepping down after nearly five years.

Laclau will continue to "serve some of EY's largest clients and lead the firm's technology driven pursuits in the UK."

The news comes amid a struggle among Big Four firms to deal with declining demand for professional services.

According to EY's annual report published in October, the company's head count fell by 2,450 in the year to June 30 — the first decrease in 14 years.

Revenue was up 3.9% on the previous year to $51.2 billion, the firm's poorest performance since 2010. And it reported a 4% fall in revenues for consulting and strategy.

EY is not alone in cutting UK staff numbers in recent months. In October, Deloitte cut 250 employees deemed to be underperforming working on consulting and advisory services in the UK.

Deloitte confirmed plans for additional cuts in the advisory division in November.

In its internal messages, Deloitte said the planned cuts were "necessary to enable us to navigate the remainder of a challenging FY25."

• Dozens of UK partners at PwC will take early retirement in December, Sky News reported.
• The larger-than-usual cohort comes as Big Four firms grapple with declining revenues.
• Partner payouts at PwC also took a hit this year, declining by 5%.

More PwC partners than usual will take early retirement at the end of this year, marking another shake-up at the firm's UK division since the appointment of a new boss, Marco Amitrano, in Spring.

PwC's 1,030 UK partners were informed this week via a voice memo from Amitrano that dozens of partners would take early retirement next month, Sky News reported.

The cohort of early retirees was larger than usual, though one insider disputed that the numbers involved were "significant," Sky News reported.

The Big Four firm appointed 60 new UK partners earlier this year.

Senior employees at the Big Four consultancies — Deloitte, EY, KPMG, and PwC, all of which are privately held — can be promoted to partners, and some are offered equity ownership in the business. In addition to salary and bonuses, equity partners traditionally receive a share of annual profits.

The jump in partners taking early retirement follows a series of changes following Amitrano's elevation to senior partner for the UK and Middle East in April.

Amitrano has launched an overhaul of operations in the UK, including creating a standalone technology and artificial intelligence unit and merging other parts of the business to create six new teams, the FT reported in October.

Almost all the major consulting firms have been grappling with a slowdown in business this year following the end of the pandemic-era rush on advisory services. The firms have been restructuring divisions, laying off employees, and making cuts to limit revenue decline.

Partner payouts have been one area targeted for cuts at EY, Deloitte, and PwC. UK partners at PwC took home an average of £862,000 (about $1.1 million) this financial year, 5% less than they did in 2023.

PwC, which is the largest of the Big Four by revenue in the UK, is also facing higher taxes per employee after the country's recently elected Labour government increased the rate of national insurance contributions (a tax on earnings) employers must pay.

PwC declined to comment.

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