Accounting giant EY has postponed the start dates for approximately 200 graduate hires due to a slowdown in business activity. Graduates scheduled to join the company’s strategy arm, EY-Parthenon, in the US this month or in January, will now begin their roles in mid-2024.
To support the delayed recruits, EY will provide stipends between $12,000 and $35,000. The firm has also reduced the number of internship positions for next summer to address a hiring imbalance.
During a recent call with staff, EY-Parthenon leaders attributed the delay to weaker-than-expected growth in advisory revenue, particularly due to a sluggish market for mergers and acquisitions and private equity activity since the start of the firm’s fiscal year in July.
This marks the second consecutive year EY has delayed start dates for new hires, following similar postponements for its 2023 recruits. The firm explained that the decision was made after “careful consideration of the current M&A environment and business needs,” and emphasised its aim to provide new joiners with high-quality assignments to ensure a strong professional trajectory.
The postponements come at a time when US consulting firms are struggling to predict demand for advisory services, which surged during the Covid-19 pandemic but have since declined.
In the UK, a report from the Institute for Government recommended that the government reduce its reliance on management consultants, as £5.4 billion in consultancy contracts are set to expire over the course of this Parliament. Chancellor Rachel Reeves has pledged to halve spending on external contractors, including Big Four firms EY, KPMG, PwC, and Deloitte, amid concerns that Whitehall has become overly dependent on costly advisors.
Meanwhile, competition in the audit market is intensifying, with non-Big Four firms increasing their presence in audit work for FTSE 250 companies and other segments.
