Ernst & Young's US arm said on Monday it was firing 5 per cent of its workforce, less than a week after blocked the global accounting giant's plan to break up its auditing and consulting units.
The layoffs will affect about 3,000 of the company's US employees.
The decision was made after assessing the effects of current economic conditions, strong employee retention rates and "overcapacity" in parts of the company, EY US said.
After months of trying to woo partners, London-based EY last week called off a proposed overhaul of its businesses, which was meant to address regulatory concerns over potential conflicts of interest after its US executive committee decided not to ratify the plan.
Corporate America has been hit by a wave of layoffs after the US Federal Reserve's quantitative tightening following the Covid-19 pandemic.
Among EY's "Big Four" peers, KPMG is reportedly laying off some staff. Deloitte and PwC make up the rest of the Big Four.
EY's layoffs were first reported by the Financial Times, which said the cuts would mainly affect the consulting business.
