In an overhaul of its global operations, Ernst & Young (EY) has announced a major restructuring plan that will see the consolidation of its existing 18 regions into 10 “super regions” and the elimination of significant layers of middle management. The initiative, unveiled to partners on March 28 and effective from July 1, marks one of the most significant structural shifts in the firm’s history. The reorganization, aims to streamline decision-making, improve global integration, and cut costs. According to a firm spokesperson, the changes are part of EY’s ambition to become “the most globally integrated professional services organization in the world.”
Julie Boland, head of EY US, is set to lead one of the newly created super regions, which will encompass the United States, Latin America, and Israel. Other similar realignments are expected across Europe, Asia-Pacific, and Africa.
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Middle Management Slashed
The restructuring also involves a significant culling of mid-level executive roles, particularly impacting EY’s three major geographic groupings—Americas, EMEIA (Europe, Middle East, India, and Africa), and Asia-Pacific. Sources suggest that affected managers will be given the option to retire or compete for limited senior roles within the new structure. The exact scale of the job cuts remains unclear, but insiders indicate that regions like EMEIA may face the heaviest impact. The firm has yet to release specific figures. However, the move is part of an aggressive cost-reduction drive that began last year when EY slashed its industry sector groups from eight to six.
Fallout from Project Everest
This sweeping reorganization comes on the heels of EY’s failed attempt to split its auditing and consulting arms, codenamed Project Everest. The ambitious but ultimately abandoned plan provided critical insights into internal inefficiencies and inspired a shift in strategic direction. “We learned a lot of lessons,” said one EY partner. “Testing ourselves against the market has given us the direction of travel on costs.”
While the overhaul reduces the responsibilities of the firm’s major geographic groupings, they will not be eliminated entirely. Instead, more power will be decentralized to country-level leadership and EY’s global executive team. A former EY partner questioned the value of the traditional geographic management layer: “Are they looking over the shoulder of the countries, acting as a conduit from global to the countries, or something else?”
Global Trend Across Big Four
EY is not alone in facing structural challenges. Fellow Big Four firms Deloitte and KPMG are also reorganizing their operations to reduce costs and improve delivery efficiency. Deloitte has cut back its business lines from five to four, while KPMG is merging its partnerships into larger regional clusters.
In the UK and Ireland, EY recently reduced its legal business, putting nearly 40 jobs at risk and cutting 30 partners. Across Europe, rising performance pressures have prompted quiet exits among partners, often without formal announcements.
Industry Response and Concerns
Industry experts have offered mixed reactions. Fiona Czerniawska, CEO of Source Global Research, warned that the professional services sector should brace for further job losses: “We should expect more job cuts across the Big Four in the UK and probably in Europe.”
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While EY positions the restructuring as a move toward “seamless, comprehensive, and connected client services,” some insiders are cautious. Czerniawska warned that internal changes risk disempowering staff: “You don’t want to make people feel they can’t take decisions, but they have to recognize the benefits of working in broader teams.” A former senior partner at a rival firm echoed these concerns: “A risk with reorganizations is that energy and resources are focused internally instead of on pursuing clients. You spend 18 months looking inwards, not outwards.”
James O’Dowd, founder of recruitment firm Patrick Morgan, was more critical, suggesting that the changes could prove superficial. “In practice, the country still has the power and influence,” he noted. “This feels more like rearranging deckchairs.” Despite skepticism, EY insists that the restructuring is a forward-looking strategy that will drive investment and accelerate growth. As the July 1 rollout date approaches, the industry will be watching closely to see whether the bold new structure delivers the intended results—or becomes yet another lesson in corporate transformation.