Ernst & Young will lay off 5 percent of its employees

Global audit and consulting firm Ernst & Young announced that it will lay off approximately 3,000 employees.

EY USA announced yesterday that it will lay off 5 percent of its employees, after abandoning its plan to separate the audit and consulting units.

CURRENT ECONOMIC CONDITIONS GIVEN AS JUSTICE

In the EY USA statement, it was indicated that the decision was made after evaluating the effects of current economic conditions, the high rate of not being able to distribute profits and the “overcapacity” observed in some parts of the company.

After months of trying to persuade partners, London-based EY has canceled its plan to separate its audit and consulting units to address concerns about potential conflicts of interest. (Reuters)