EY Launches Second Round of Legal Cuts in the UK, Affecting 24 Employees

EY Launches Second Round of Legal Cuts in the UK, 24 Employees Affected

In recent weeks, EY has announced a second round of legal cuts in the UK, with a redundancy consultation affecting 24 employees. This move comes after the closure of EY Riverview Law, the Manchester-based low-cost legal services arm, which resulted in the loss of 55 jobs.

An EY spokesperson stated, “EY regularly reviews the resourcing needs of the business. We can confirm that 24 employees from EY’s UK Financial Services Legal Advisory Services business are subject to a redundancy consultation process. We will always seek to redeploy our people to other parts of the business where possible. EY Law employs 3,500 people globally, with more than 290 people supporting the UK market.”

It is important to note that none of the employees affected by this latest round of cuts are trainees. Last year, EY cut around 300 UK roles as it faced rising costs and weakening demand. The firm also had to deal with the impact of its decision to scrap the plan to separate its global advisory and auditing businesses.

EY, along with other Big Four accountancy firms, has expressed ambitions to grow their legal businesses in the UK. The acquisition of managed legal services business Riverview Law in 2018 was seen as a significant step towards this goal.

Despite the challenging market conditions, EY’s UK and Ireland head, Philip Goodstone, stated in January 2022 that the firm aims to treble in size over the next three years, with plans to recruit an additional 800 lawyers. However, EY is not alone in cutting legal roles in the UK, as other law firms like CMS and Trowers and Hamlins have also made similar moves.

In the US, cuts have been more widespread, particularly among firms that expanded rapidly to cater to the tech-fueled M&A boom that slowed down in the second half of 2022. Firms like Cooley, Orrick, Goodwin Procter, and others have reduced their lawyer ranks in response to the economic downturn.

Overall, the legal industry is facing challenges on both sides of the Atlantic, with firms making tough decisions to adapt to changing market conditions.