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Big 4 Layoffs in 2023

Big 4 layoffs are increasing in 2023. Because businesses are scaling back on third-party help in specific areas, slower growth is forecasted.

Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers aggressively hired over the past two years due to the high demand for consulting in areas such as corporate strategy. Now, the “Big 4” are experiencing lower attrition than expected during the first half of 2023. As a result, they are laying off employees.

Discover how the Big 4 Layoffs in 2023 might impact your company.

Layoffs on the Advisory Side

According to the Financial Times, Deloitte laid off 1.5% of its employees in April. Approximately 1,200 US jobs were cut, especially on the financial advisory side, due to a slump in merger and acquisition activity.

The Wall Street Journal reported that Ernst & Young laid off approximately 3,000 employees in April, approximately 5% of its US workforce. The failure of the plan to separate the business into one firm centered on consulting and another firm centered on auditing was reported to be unrelated to the layoffs.

According to the Financial Times, KPMG laid off approximately 2% of its employees in the U.S. in February after a significant slowdown in its consulting business, impacting approximately 700 people. In June, the company laid off approximately 5% of its US employees in advisory, tax, and back-office jobs.

The Wall Street Journal reported that PricewaterhouseCoopers is not planning any layoffs this year. The firm is expecting an increase in its global workforce.

Reasons for Big 4 Layoffs in 2023

Many of the Big 4 layoffs of consultants were due to clients canceling projects because of the slower economy. For instance, many clients reduced their mergers and acquisitions activity and need for due diligence and related support. Also, because more clients expect specialized skills and experience with specific tools and data, consultants who lack these abilities are prone to layoffs.

Conversely, because audits are mandatory for public companies, the demand for auditors continues. As a result, auditors tend to be safe from layoffs.

Potential Impact of Big 4 Layoffs on Your Company

The Big 4 Layoffs provide opportunities for your company to hire accountants to help your organization advance. The knowledge, skills, and experience gained by working for the top accounting firms can help bring your company to the next level.

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