In a move that may signal a bracing stance against potential economic turbulence, Grant Thornton LLP, a titan in the professional consulting and advisory sphere, has initiated a second wave of layoffs, cutting an additional 200 jobs.
The firm, which recently boasted record revenues, is yet again reducing its workforce, marking over 6% in cuts this year alone, according to Fox Business. The accounting firm’s strategic decision underscores the industry’s cautious navigation through an uncertain financial climate and has ignited discussions regarding the broader implications for the U.S. economy.
Grant Thornton confirmed the layoff of 200 staff members to Fox Business, following an earlier reduction of 300 jobs in the United States in May, impacting the advisory positions predominantly. The layoffs come amid signs of a looming economic slowdown that has put pressure on corporate America’s profitability prospects.
With a workforce of about 8,000 in the United States, the company’s latest action demonstrates Grant Thornton’s substantial readjustment in response to shifting market demands.
“The staffing changes reflect pockets of underutilization in limited business segments, and specialty areas that the firm is exiting due to market trends,” a spokesperson for Grant Thornton stated, emphasizing the firm’s strategic pivot towards more promising business avenues. The spokesperson added, “We continue to invest in higher-growth areas of the business to even better serve our clients.”
According to Fox Business, the layoff process at Grant Thornton began last week, with human resources reaching out to the impacted employees. Fox Business also reported that the internal shake-up coincided with the firm’s announcement of a fiscal high, boasting $2.4 billion in revenue for the year ending July 31.
Grant Thornton Employees shared their concerns with Fox Business about the potential for more stringent times post-Fed’s tightening of monetary policy to combat inflation.
Concerns regarding the economy have echoed across the consulting industry as major firms, including Ernst & Young and BDO, have also downsized this year due to a reduction in demand, representing a stark contrast to the surge experienced during the COVID-19 pandemic, according to Fox Business.
In light of the recent developments at Grant Thornton, sources warned Fox Business a “major talent exodus” may occur, with many employees preemptively exploring new opportunities to avoid the uncertain fate within the firm.
“There’s going to be a major talent exodus,” an insider conveyed, pointing to the silence from management fueling the workforce’s anxiety. “The problem is that management isn’t saying anything, so people think the worst.”
This news article was partially created with the assistance of artificial intelligence and edited and fact-checked by a human editor.