According to media reports, the Big Four accounting firms are now closely monitoring how much time employees are spending working with clients and laying off those who are deemed underutilised. These employees are being let go due to performance concerns, and not just to reduce headcount.
EY and Deloitte are said to be focusing on assessing employee workloads, particularly time spent on client projects. They are using metrics such as ‘utilisation rates’ to measure this, considering those actively working with clients as ‘utilised’ and those not as being “on the bench”.
These firms deny that performance reviews are aimed at cutting jobs, stating they invest in talent and only a small number of individuals may leave due to performance reasons.
The COVID-19 pandemic led to overhiring in these firms, and with fewer job opportunities elsewhere, attrition rates have remained low. This, combined with decreased client demand, has necessitated the recent layoffs and stricter performance evaluations.
In the last year, the Big Four companies—EY, Deloitte, PWC and KPMG—have trimmed their workforce significantly due to tough economic conditions.
Deloitte disclosed its intentions to eliminate 800 positions in September 2023, followed by another 100 in February 2023, affecting its UK consulting, financial advisory and risk-advisory sectors.
Additionally, EY reduced its UK staff by around 300 roles in 2023 across various segments, including advisory services.
