This decision comes after increased government scrutiny following the PwC tax scandal in 2022, which revealed serious breaches of trust and triggered widespread reviews of public contracts with major consulting firms. In response, governments began reducing partnerships with the big four - EY, Deloitte, KPMG and PwC - and redirected billions of dollars to smaller competitors. The shift left top consulting firms with fewer opportunities in the public sector, forcing them to reconsider growth plans.
EY's recent job cuts include the shutdown of Future Friendly, a 40-person digital consultancy the firm acquired less than two years ago to boost its app development and transformation capabilities. The team supported clients in major banks and government departments across NSW, Victoria, ACT and the healthcare sector. Despite strong investment and initial expectations, EY stated that the restructuring improves alignment with client demands, though questions remain over how removing entire teams achieves this aim.
EY indicated that the cuts affect less than 1% of its Oceania workforce, though the broader consulting industry is facing increased challenges. Tighter regulations, ongoing public scrutiny and delayed decision making are all reshaping how major consulting firms operate in Australia and globally. EY has proposed new oversight measures to support transparency in major contracts, but rebuilding public trust and business momentum will likely take time.
