EY has informed workers it should lower 3,000 jobs within the US to eradicate “overcapacity”, with the axe falling primarily on the consulting aspect of the agency.

The redundancies account for round 5 per cent of the US workforce, though the proportion reductions might be increased within the affected companies.

The cuts had been introduced lower than per week after the collapse of a plan to spin off EY’s world consulting enterprise into a brand new firm, codenamed Venture Everest.

“After assessing the impression of present financial circumstances, robust worker retention charges and overcapacity in elements of our agency, now we have made the troublesome enterprise choice to separate roughly 3,000 US staff,” an EY spokesman mentioned.

“These actions are a part of the continuing administration of our enterprise and never a results of the just lately concluded strategic overview, often known as Venture Everest.”