Layoff

Accounting giant Ernst & Young has announced its decision to fire around 5% of its workforce, or about 3,000 employees, in the US.

Affected

The layoffs will primarily affect EY’s consultancy business. The company said layoffs are part of the ongoing management of the business.

Reasons

EY attributed the job cuts in its US affiliate to current economic conditions, strong employee retention rates, and overcapacity.

Reorganization

The job cuts come after the company dropped its plan to split audit and consultancy units. EY’s US affiliate refused to take part in the reorganization.

Economic downturn

The layoffs come at a time when corporate America is bracing for a sharp economic downturn. Analysts have predicted a recession in the country this year.