Why are the Big4 making Redundancies?
As a newly qualified accountant, should this news deter you from applying to the Big4?
If you’ve been reading the business news in the last few months you’ll know that the Big4 have made redundancies globally, particularly within their advisory and consulting departments.
A slow economy and recession in the UK has hit consultancy fees, with companies choosing to keep change projects in-house during these uncertain times.
“Since last February, Deloitte, Ernst & Young, KPMG, and PwC shed more than 9,000 jobs through multiple rounds of layoffs across the firms’ largest markets in the US and UK, including reductions in Australia and Canada.”
Some sources are saying that the Big4 over-hired post-pandemic when the great resignation was taking place. There is a theory that changes in the way we work gave consulting areas optimism that demand would soar over the next few years. In reality, with interest rates going up and the UK falling into a recession, many organisations have been doing urgent or top-priority work-only. This is good news for tax and audit departments but not so much for consultants.
It’s not all doom and gloom
Consulting has historically contributed to revenue growth more than audit has in recent years, with the Big4 expanding their consultancy functions. With the rise of AI, there is scope of consultants to adapt their skills to embed AI into companies and even develop AI tools themselves to support their clients.
Is this an opportunity for the rest of the top 100 accountancy firms to snap-up those made redundant from the Big4? It could be good news for these firms as they compete to hire top-quality talent to grow their own businesses. Many Top 100 firms offer competitive salaries, more flexibility, faster progression, and the opportunity to work more closely with clients.
Perhaps Big4 talent will find a more fulfilling and sustainable way of life at smaller firms.
If you are a newly qualified accountant, should the redundancy news deter you from applying to the Big4?
The Big4 have always had relatively high attrition rates and redundancies do happen from time to time. This news should therefore not necessarily deter you from applying to the Big4.
The experience gained at the Big4, or even Big6, will be invaluable for your future career and of course having the Big4 on your CV is useful for future roles - whether that be in-house or at a smaller professional services firm.
If you are thinking of applying for the Big4, think about what sort of lifestyle you want to have. It’s likely that hours will be long, the role will be competitive and flexibility isn’t a given (although firms have made improvements in this area in recent years). Focus on what experience you could gain, from which clients, in which sectors. Is all that leading you to where you want to be in the future?
