EY to Restructure Legal Arm Amid Job Cuts

EY is planning to overhaul its regional law division, a change likely to result in job losses at the well-known consulting firm. Employees have been asked for feedback on the proposed restructure, with leadership indicating that the move could shrink the legal team significantly.

EY's decision follows a trend among major consulting firms. Last year, KPMG closed its 30-person law division, while PwC has scaled back its legal department. The firm has stated that while legal services will continue in certain strategic areas, the stand-alone practice is under review.

In its peak years, EY reported having 30 partners in its legal team. However, current estimates suggest around 25 employees and six partners remain. The firm had previously aimed to expand its law practice significantly but has struggled with challenges such as balancing legal and consulting business models, internal conflicts, and cost pressures.

This restructuring aligns with broader cost-cutting moves across major consultancies. In the past year, EY has implemented hiring restrictions, seen a decline in partner pay by 15%, and reduced its workforce by nearly 500 staff members. Meanwhile, its UK legal division has been under review since late 2023, highlighting a global reassessment of its legal ambitions.

Source: Australian Financial Review, EY