Hearing word today that RSM Canada has started handing out pink slips, and the culprit seems to be lower-than-expected revenues due to a downturn in business caused by the COVID-19 pandemic.
According to a source, a practice leader sent out this email to staff on Tuesday:
Although as a firm we remain in a strong position, we have made some difficult decisions in order to manage our workforce more tightly, and to meet current and anticipated client demands. Today we have moved forward with a round of headcount reductions across all four RSM Canada offices. The lack of turnover simply outpaced our forecast for FY21 and as a result, the majority of reductions are due to excess capacity within our tax and audit groups, along with a small number of ICS positions.
ICS is internal client services, or those with non-client-facing roles, like marketing and HR.
The email didn’t indicated how many people are being let go from RSM, our source said.
This person, who is still employed with RSM, said the email “came out of the blue” and “the messaging so far has been that partners are taking most of the effect of COVID.”
Also, unlike Deloitte, EY, PwC, and Grant Thornton in Canada, RSM hasn’t asked employees to voluntarily take unpaid time off or to work less hours for less pay to cut costs, we were told. Our source said:
They didn’t need us to do that. There weren’t any voluntary or otherwise work hour arrangements. We are all at 100% for 100%. They said we can reach out if we need to be more flexible given any special at home situations but that’s on an ad hoc basis.
And to add insult to injury, raises are only being given to RSMers who are getting a promotion, just like at RSM US.
If you’ve been impacted by the job cuts at RSM Canada or if you have more information about what’s going on there, get a hold of us using the contact info below.
Good luck to those who are affected.
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