One of the leading providers of professional services is Grant Thornton. It cut employees during a period of economic turmoil. This decision follows a broader industry trend towards strategic realignment. It affected 200 skilled personnel in November 2023. Grant Thornton Layoffs?
Combined with previous cuts, the company has shrunk its robust staff by more than 6% in 2023. It reported a significant $2.4 billion in revenue in 2022. This change represents a crucial turning point for the affected professionals.
In March 2024, Grant Thornton laid off 13 management consulting staff. All of them were below the partnership level. CEO Greg Keith stated that the retail market’s muted demand influenced the decision. In this article, we learn more about the layoffs at Grant Thornton.
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About the company
In terms of revenue and workforce, Grant Thornton ranks seventh and sixth globally, respectively. It is a professional services network comprising independent accounting and consulting member companies. They offer tax, assurance, and assistance services to the public sector, privately held, and public interest organizations.
Grant Thornton International Ltd. is a worldwide umbrella membership organization. It operates as a private business limited by guarantee, not-for-profit, and non-practicing. Grant Thornton International Ltd. was formed in London, England, with no share capital.
Grant Thornton International Ltd. (GTIL) reports that its member companies are part of a global network that operates in 147 markets. As of 2023, the network employs over 68,000 people and generates US$7.2 billion in revenue globally.
Layoffs at Grant Thornton 2023
Grant Thornton Advisory has laid off about 100 employees in 2023. It occurred following a firm adjustment to the groups that fall under and are not under guidance. Performance is merely a factor for a limited number of users.
It was announced in November 2023 that 200 employees of Grant Thornton LLP would be let go. In 2023, this was the company’s second round of layoffs. According to Fox Business Network, this is a sign that the biggest names in the professional consulting and advisory industry are bracing for a downturn in the economy. They also said it would reduce revenues across corporate America.
In May 2023, the company cut around 300 jobs in its U.S. branch. The cuts also affected the audit and tax divisions. Grant Thornton employs approximately 8,000 workers in the United States, which indicates that the firm has reduced its staff by more than 6% as of 2023.
The layoffs, which again started in November 2023, have yet to be made public. According to sources with close knowledge of the situation at the time, they primarily impacted the company’s advisory positions.
A spokesman for Grant Thornton verified the layoffs. He stated, “The staff reductions reflect areas of underutilization in limited business segments. Also, it includes specific fields in which the firm is exiting due to market trends. We continue to invest in high-growth business areas to serve our customers better.”
Grant Thornton reduces the size of its management consulting group
Grant Thornton has laid off thirteen management consultants in 2024. The affected employees are below the partner level.” According to Keith,
“The management consulting group has had to make the hard choice to make 13 roles below partner level unneeded. This is due to the ongoing challenges in the retail market. It has led to an uncertain outlook with financially low demand within the sector.”
The announcement comes after PwC Australia indicated that 329 positions would be removed, with up to 37 partners retiring earlier. Just four months earlier, the company laid off 340 employees. Last year, within a day of the announcement, EY laid off 320 staff nationwide.
Job cuts in the consulting industry have become almost standard in recent years. The issue is one of demand from the private and public sectors.
Private companies are reducing their dependence on external advisory services. This is due to a downturn in M&A activity, poor economic growth, and high interest rates.
Government slowdowns, on the other hand, have been caused mainly by public concern. They are concerned about expensive outsourcing costs and the political consequences of the PwC tax scandal.
Conclusion
In 2023, several employees told Fox Business that they believed the company was preparing for more difficult times. It was after the Fed said it would keep monetary policy tight to battle inflation for years. Many economists expect a recession in 2024.
Other consulting firms, such as Ernst & Young and BDO, reduced staff in 2023 due to decreased service demand. However, Grant Thornton employees said the cuts are more concerning. They reflect management’s anxiety that a recession is not only possible but likely.”
At that point, Grant Thornton may face a “major talent drain” in the United States. The sources informed Fox Business that employees openly sell their resumes online. They Are hoping to avoid the dreaded call from HR informing them they have been laid off.
“There will be a major talent exodus,” someone familiar with the situation said. “The issue is that management isn’t saying anything, making individuals think the worst.”
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