EY Australia is preparing for job cuts, with about 1% of its workforce—roughly 100 employees—expected to be impacted, primarily in the technology consulting division. The move comes as the firm grapples with tough market conditions and ongoing scrutiny of the consulting industry.

EY Australia had set its sights on a fiscal recovery in 2025, but the economic climate has proven difficult. The consulting sector is facing increasing regulatory pressures, and post-pandemic market instability continues to reshape business priorities. This restructuring aligns with broader efforts by major professional services firms to remain agile in a shifting financial landscape.

The cuts also come in the wake of the PwC Australia tax leak scandal from mid-2023, which sent shockwaves through the accounting and consulting world. The scandal intensified public and governmental scrutiny, leading firms like EY to reassess their strategies and ensure compliance with evolving regulatory frameworks.

EY's downsizing highlights the vulnerability of consulting firms in the face of economic headwinds and industry-wide disruptions. With accounting giants tightening operations, investors are now weighing the potential long-term effects on financial markets and corporate strategies.

Beyond market forces, these job cuts reflect a broader shift towards accountability in the professional services sector. The PwC tax scandal triggered a wave of internal reviews across global firms, prompting major players to implement structural changes to rebuild trust. EY Australia's latest move suggests that firms are not only adapting to economic pressures but also responding to heightened expectations for ethical governance.

While EY has yet to make an official statement on the restructuring, the move signals a recalibration of its business model. As regulatory landscapes evolve and market conditions remain uncertain, further strategic shifts in the consulting sector may be on the horizon.