Ernst & Young (EY), a major player in financial services, has allegedly initiated layoffs in the United States (US). According to reports, the company has announced plans to cut nearly 3,000 US jobs, citing excessive capacity as the reason for downsizing.

As per an AFP report, Ernst & Young's layoffs are a component of its broader restructuring strategy. The report revealed that the reduction of jobs at EY amounts to under 5% of its US personnel, highlighting the company's surplus capacity.

“After assessing the impact of current economic conditions, strong employee retention rates and overcapacity in parts of our firm, we have made the difficult business decision to separate approximately 3,000 US employees, representing less than five per cent of our US workforce,” AFP quoted an Ernst & Young spokesperson as saying.

The layoffs at Ernst & Young coincide with the recent announcement that the company has abandoned its "Project Everest." This initiative sought to split EY's consulting and auditing divisions to promote growth and reduce potential conflicts of interest but was discontinued due to conflicts of interest.

According to the report, an Ernst & Young spokesperson stated that these job cuts "were a part of the ongoing management of our business and not a result of the recently concluded strategic review."

Ernst & Young is a member of the Big Four, a British financial services behemoth recognised for its accomplishments. The announcement of job cuts at EY has arrived during a period of economic decline across the globe.