As Grant Thornton moves closer to sealing a deal on a significant private equity investment from New York-based New Mountain Capital, the seventh-largest accounting firm in the U.S. is laying off 350 employees, equating to roughly 3.5% of its U.S. workforce, the Wall Street Journal reported on May 20.
In addition, some incoming associates at the Chicago-based firm posted on Reddit yesterday that their October start dates have now been delayed until January 2025, most likely due to Grant Thornton recently changing its fiscal year end from July 31 to Dec. 31.
The Wall Street Journal reported that the job cuts span advisory, audit, and tax up to the level of managing director, and those impacted would be notified this week.
In a statement to the WSJ, Grant Thornton said the firm has made targeted staffing adjustments to address evolving demand in select business segments, and Grant Thornton “continues to invest and grow its team, and is on track to deliver another fiscal year of strong performance.”
Grant Thornton pulled in a record $2.4 billion in revenue in the U.S. during its 2023 fiscal year.
This round of layoffs comes almost exactly a year after Grant Thornton let 300 people go involuntarily, mostly from the firm’s tax and advisory practices. Another 200 advisory folks were laid off from the firm last November.
Many of the largest accounting firms in the U.S. are experiencing a downturn in demand for services like advisory because of high interest rates and a shaky economy, which has resulted in layoffs over the last year or so, including at EY and KPMG. Top 10 accounting firm Crowe, also based in Chicago, reportedly cut 3% of its U.S. workforce on May 17.
These most recent job cuts at Grant Thornton are occurring after the firm reportedly agreed to sell a majority stake in March to investment firm New Mountain Capital. The transaction is subject to regulatory approval and other standard closing conditions. It’s expected to be finalized in the second quarter of this year.
Grant Thornton also announced in March that it will change to an alternative practice structure: Grant Thornton LLP, a licensed CPA firm, will provide attest services, while Grant Thornton Advisors LLC will provide business advisory and non-attest services. That change is expected to occur on June 1, according to several posts on Reddit.
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Tags: Accounting, Firm Management, Payroll, Staffing
