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EY's revenue has increased, driven by growth in AI consulting services which offset a slowdown in traditional deal work, highlighting a shift in the company's focus towards technology-driven consulting.
EY, the global professional services firm, reportedly took on $700 million in debt to fund its ill-fated "Project Everest" spin-off plan, which aimed to create a separate technology business. The project faced financial troubles and was eventually abandoned, leading to significant losses for the company.
Wirecard's insolvency manager has filed a lawsuit against the accounting firm EY, seeking 1.5 billion euros in damages for its alleged negligence in auditing the company's finances before its collapse in 2020. This legal action adds to a series of lawsuits EY is facing, including a recent investor suit demanding over 700 million euros. EY has not commented on the new lawsuit but has previously denied claims for damages related to Wirecard, which went bankrupt after revealing a 1.9 billion-euro discrepancy in its accounts attributed to fraud.
Ernst & Young (EY) is implementing deeper partner cuts than usual, laying off dozens of partners across all U.S. businesses, as the Big Four accounting firm faces slowing demand for certain services and aims to reduce costs following its failed plan to break up the firm. The cuts primarily target the advisory side of the U.S. operation, affecting over 10% of partners in consulting and about 4% in strategy and transactions, with some impact on the audit and tax arms as well.
Janet Truncale has been elected as the next EY Global Chair and CEO, effective from July 1, 2024. She will succeed Carmine Di Sibio, who steps down on the same date. Truncale is currently serving as the Regional Managing Partner for EY Americas Financial Services Organization (FSO) and has a strong background in serving clients across all EY businesses. Di Sibio praised Truncale's leadership skills and emphasized her focus on culture and experience. Under Di Sibio's leadership, EY implemented transformative changes, including a global strategy called NextWave, commitments to sustainability, and efforts to promote diversity, equity, and inclusion.
Janet Truncale has been selected as the first woman to lead a Big Four accounting firm, as EY appoints her to the position. This move marks a significant step towards gender equality in the industry.
Consulting firm EY has completed a $1.4 billion investment into artificial intelligence, unveiling its own large language model called EY.ai EYQ. The company plans to train its 400,000 employee workforce on AI and will focus future spending on refining its new AI platform.
EY, one of the Big Four accounting firms, has rejected a proposal by private equity firm TPG to break up the company. TPG's plan aimed to separate EY's audit and consulting businesses, but EY deemed the proposal not in the best interest of its clients and stakeholders.
UBS Group has decided to retain EY as its external auditor and expand its role to include Credit Suisse's accounts from 2024. PwC, which has been Credit Suisse's auditor since 2020, will audit the acquired bank's accounts for 2023. The contract size will require EY to bring in staff from other countries to work on the audit.
Ernst & Young's effort to split the firm's auditing and consulting operations, known as Project Everest, is dead for the next few years, according to internal webcasts and sources. Leaders of EY's dominant U.S. and U.K. operations are now focused on repairing the damage caused by the 18-month effort to split the firm.
Accounting firm Ernst & Young (EY) is cutting 3,000 jobs in the US, citing "overcapacity" in parts of the company. The move comes as corporate America is bracing for an economic downturn. The cuts affect about 5% of its US workforce, and primarily affect the consulting side of the business. EY had proposed a split of its auditing and consulting divisions, but the plan was scuttled after US teams raised objections over how to structure the breakup.
EY US is cutting 5% of its workforce, affecting around 3,000 employees, due to current economic conditions, strong employee retention rates, and "overcapacity" in parts of the company. This comes less than a week after the unit's objection torpedoed the global accounting giant's plan to break up its audit and consulting units. The layoffs will chiefly affect the consulting business.
Accounting firm EY is set to cut 3,000 jobs in the US as part of a restructuring plan aimed at eliminating "overcapacity". The move comes as the company seeks to streamline its operations and focus on digital services. EY has not disclosed which areas of the business will be affected by the job cuts.
Ernst & Young's plan to split its legal and consulting businesses was derailed by miscalculations and opposition from powerful partners, according to sources. The plan would have separated the company's legal and consulting businesses, but was ultimately abandoned due to concerns over potential legal and financial risks.
Accounting firm EY has abandoned its plan to split its audit and consulting units, which was aimed at addressing regulatory concerns over potential conflicts of interest. The plan, known as "Project Everest", faced resistance from some of EY's partners. The UK's Financial Reporting Council had asked the Big Four firms to separate auditing as a standalone business in Britain by June 2024.