PracticeConsultingACCOUNTANCY AGE EXCLUSIVE: Ernst & Young and Arthur Andersen begin to shed consultants in drive to embrace e-business

ACCOUNTANCY AGE EXCLUSIVE: Ernst & Young and Arthur Andersen begin to shed consultants in drive to embrace e-business

Arthur Andersen and Ernst & Young have begun shedding consultants as a result of reviews of their e-business requirements, bringing the number of Big Five firms to lay off consultants in the drive to embrace e-business to three in little more than a month.

In December, PricewaterhouseCoopers announced that 200 consultants would be laid off to make way for e-business specialists.

Although Andersen has so far shed around 30 staff – numbers on a far smaller scale that its larger rival, and only tiny in comparison with the 700 people employed by the firm in its consultancy division – more are expected to follow.

A spokesman said: ‘Arthur Andersen’s business consulting practice in the UK has been increasing the number of people with strong e-business experience. We’ll continue to bring in people with the right skills set for the new economy and the changing marketplace.’

He added that it was ‘inevitable’ that people choose to move on, although the underlying theme reveals a pressure emerging on Big Five to compete in e-business and remove consultants as necessary to make way for new media specialists.

Ernst & Young has also been reviewing its consultancy arrangements with regard to e-business, and admitted to losing a ‘small number of consultants who did not have the specific skills to meet its very specific challenges’.But management consulting senior partner Paul Thorley confirmed that the firm’s headcount has not declined.

‘The management consultancy division is continuing to actively recruit and by the end of the financial year, we will have welcomed 70 to 80 new consultants.’Deloittes confirmed that it is also engaged in a major recruitment campaign for e-business consultants but denied that any staff would leave as a result.

Ernst & YoungArthur Andersen

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer