EY has announced the redundancy of 148 roles within its consulting and financial services divisions. 

The decision announced this week was linked to a deepening downturn in consulting demand. Affected employees have reportedly been given a one-week window to secure alternative positions within the company or face departure.

The redundancies are seen as part of a broader trend within the consulting sector, which has seen similar layoffs by other major players including PwC, KPMG, and Deloitte.

All have been attributed to persistent low demand and the aftermath of the PwC tax leaks scandal.

The professional services sector, particularly consulting, is experiencing what insiders describe as the most protracted and severe downturn in recent history. 

This has been exacerbated by a notable decrease in government and private sector spending on consulting services following high-profile scandals that have eroded trust in major firms. 

According to recent data from AusTender, government expenditure on the big four consulting firms has declined by over 40 per cent between the fourth quarters of 2022 and 2023.

Adding to the economic pressures are changes in private sector behaviour, with a drop in mergers and acquisitions activity and a trend towards reducing or deferring spending on external advisory services.

EY says despite the cuts, it remains committed to its cultural transformation, referencing an ongoing review led by Elizabeth Broderick aimed at enhancing workplace safety and inclusivity.