Delays at EY: Uncertainties in the M&A Sector Postpone Career Starts

Citing well-informed sources, the Financial Times reported that EY has delayed the start date for around 200 graduates who were supposed to begin with the esteemed strategy consultancy, Parthenon, in the United States. Originally, these new employees were scheduled for November 2024 or January 2025, but their onboarding has now been deferred to mid-2025. According to an internal document, this decision was made because of a slower-than-expected increase in consulting revenue since July, due to a disappointing market for mergers and acquisitions (M&A) and private equity activities. In an employee meeting, EY-Parthenon executives cited the sluggish M&A sector as the primary reason for the delay. Uncertainties in the consulting sector are not new; the industry, which boomed during the COVID-19 pandemic, is now experiencing a noticeable decline. Nevertheless, the Big Four — EY, PwC, KPMG, and Deloitte — as well as firms like McKinsey continue to hire thousands of graduates, albeit without an increase in starting salaries, as reported by academic advisors. The postponement of start dates is not limited to this year; similar delays were recorded in 2023, with EY-Parthenon having already postponed start dates for new hires twice that year. EY stated that the decision was made "after careful consideration of the current M&A environment and our business needs" to ensure that new employees receive valuable and extensive projects. As compensation for the inconvenience, affected graduates will receive between $12,000 and $35,000, depending on the originally planned start date and their educational background. Additionally, EY-Parthenon has reduced the number of internship opportunities for the coming summer to realign its recruitment strategy. Despite the current downturn, industry leaders remain optimistic about a recovery in the consulting sector. Globally, M&A deals in the first three quarters of 2024 have dropped to a nine-year low, yet significant transactions by multinational companies suggest a potential revival. KPMG US CEO Paul Knopp remains particularly optimistic about the private equity sector, where substantial capital is available for investment. KPMG has not implemented any start delays this year and plans to increase campus recruitment in anticipation of a robust economy in 2025. In early October 2024, KPMG International integrated generative artificial intelligence into its global Smart Audit platform, KPMG Clara.