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August 2, 2009

BDO Stoy Hayward axes 10% of partners

Simon Michaels

Simon Michaels

UK firm BDO Stoy Hayward has announced that 1 in 10 partners are to
leave the firm.

According to International Accounting
Bulletin
data, the mid-tier firm had 3,307 total staff and 235
partners in 2008.

Since the recession gripped the UK, several
firms have trimmed their workforces but it is rare for firms to
make such significant cuts to partnerships.

A BDO spokesperson said the partners were
invited to leave the partnership for a number of reasons, including
the economic climate, but the decision was not a sign of deeper
troubles within the firm.

Managing partner Simon Michaels said the firm
made the “difficult” decision to ensure it remains competitive
within the market.

“We have looked closely at the changes in the
market, how they will affect our business and where the
opportunities lie,” Michaels said. “The conclusion was that we need
to continue to reshape our business.

“This has been a difficult decision and not
one we have made lightly. Our clients come first and our key
priority is to focus our business and services around their needs,
not only now but in the future.”

In December 2008, the firm cut 250 jobs across
the country, which represented about 8 percent of its total
workforce.

Then in February, the firm aligned its tax and
audit practices, reducing the size of its leadership team to six to
allow key partners to spend more time with clients.

A spokesperson at the time said the changes
were not the result of staff cuts and that no further staff
reductions were planned.

BDO Stoy Hayward is the sixth largest UK firm
in terms of fee income.

The firm reported revenue of £353 million
($579 million) in the year to 30 June 2008. This included a profit
of £65 million, which was a drop of 10 percent on the previous
financial year.

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