December layoffs bolster financial standings before the fiscal year ends|20th Television|via Giphy
December usually sees several companies slash jobs. The current holiday season is no different, marred by a rise in layoffs across sectors in the United States.
Ernst & Young (EY), a prominent member of the Big Four accounting firms, is set to lay off over 10% of partners in consulting and approximately 4% in strategy and transitions across the US.
The firm also aims to cut jobs where growth has stagnated. The decision aims to address pressing issues of stalled growth and surplus capacity, echoing a sentiment of necessary cost reduction in the face of challenging business landscapes.
The reduced demand for consulting services amid economic uncertainties coupled with a downturn in deal volumes and private equity transactions has compelled industry leaders like EY, KPMG, and Deloitte to reevaluate their strategies in an uncertain market.
Reasons behind the layoffs
- December layoffs bolster financial standings before the fiscal year ends.
- Investor pressures drive decisions as Q4 results influence stock prices.
- Year-end layoffs also mean fewer bonuses.
Companies taking action
- General Motors (GM) will cut 1,300 jobs in its two plants in Michigan, while its Cruise unit will slash ~24% of its workforce.
- Hasbro, the toy maker, will eliminate 1,100 jobs, about 20% of its workforce, due to challenging market conditions.
- Spotify is slashing over 1,500 jobs. The company attributes this decision to an economic slowdown and the need to optimize resources.
Citi, Amazon, Broadcom and Chewy also reported layoffs as a part of their strategic realignments and restructuring.