EY has postponed the start dates for approximately 200 graduates scheduled to join its prestigious strategy advisor Parthenon in the US, reported the Financial Times, citing sources.
Initially expected to commence work in November 2024 or in January 2025, these new hires have been informed they will not be needed until mid-2025.
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By GlobalDataThis decision follows an internal message obtained by the Financial Times, which indicates a slower than anticipated advisory revenue growth since July, attributed to a disappointing market for mergers and acquisitions (M&A) and private equity activity.
During a staff call, EY-Parthenon leaders cited the sluggish M&A sector as a key factor for the delay.
This move reflects a broader uncertainty within the consulting industry, which experienced a boom during the coronavirus pandemic but has since seen a significant decline.
Despite this, the Big Four—EY, PwC, KPMG, and Deloitte—and firms such as McKinsey continue to hire thousands of graduates, albeit without increasing starting salaries, as noted by student counsellors.
The delay in start dates is not unique to this year; similar postponements occurred in 2023, and EY-Parthenon has already deferred the start dates for its 2023 recruits twice.
In a statement, EY explained that the decision was taken “after careful consideration of the current M&A environment and our business needs.”
The firm aims to “ensure that our new joiners have the quality and breadth of assignments to ensure a successful start and strong professional trajectory.”
To compensate for the inconvenience, EY will offer stipends ranging from $12,000 to $35,000 to the affected graduates, with the amount varying based on their original start date and educational background.
Furthermore, EY-Parthenon has reduced the number of internship opportunities for the upcoming summer, aiming to realign its recruitment strategy.
Internships are often a pathway to full-time offers for the subsequent year.
Despite the current downturn, industry leaders remain hopeful for a resurgence in the consulting sector.
The volume of M&A deals has dipped to a nine-year low globally in the first three quarters of 2024, but the emergence of significant transactions among multinationals suggests a potential uptick in activity.
KPMG US CEO Paul Knopp expressed optimism, particularly in the private equity domain, where substantial capital is ready for investment.
Knopp revealed that KPMG has not deferred start dates this year and is increasing campus recruitment in anticipation of a robust economy in 2025.
Earlier in October 2024, KPMG International integrated generative artificial intelligence into its global smart audit platform, KPMG Clara.
