Tracker: These Accounting Firms Have Either Cut Jobs or Pay (or Both) During the COVID-19 Crisis

[Updated on May 29 with information about Deloitte U.S..]

In case you haven’t noticed, there have been a lot of salary reductions and jobs lost throughout public accounting over the past couple weeks as a result of the coronavirus pandemic. And it sucks.

So we’ve started compiling a list of firms that have resorted to cost-cutting measures like layoffs, pay cuts, and furloughs during this crazy and uncertain time. We’ve also included firms that have recently cut or deferred bonuses, raises, and promotions.

This list is far from comprehensive and we’ll continue to update it as more news is made available. If you have a tip about layoffs, pay cuts, or other cost-cutting measures at your firm, or if you see something reported below that needs clarification, email or text us using the information at the bottom of this post.

Andersen

  • 5% to 14% pay cut for employees making less than $100,000.
  • 15% to 19% pay cut for employees making between $100,000 and $200,000.
  • 40% to 50% pay cut for employees making more than $700,000.

Aprio

  • Approximately 40 people laid off.

[Source: Tips to GC]

Armanino

  • 8% of firm’s workforce laid off.
  • 10% pay cut for employees firm-wide.
  • Partner distributions reduced.
  • Some employees furloughed.

Baker Tilly

  • Layoffs (unconfirmed how many; told they were performance-based).
  • 20% to 30% pay cut for partners.

Berdon

  • 15 people laid off.
  • April partner distributions deferred.
  • Third-party outsourcing group based in India let go.

BDO Canada

  • 25% reduction in partner draws.

[Source: The Globe and Mail]

BDO UK

  • 700 employees furloughed (470 first-year trainees and 230 support staff).
  • 25% reduction in partners’ monthly pay.

[Source: The Times]

BDO USA

  • 5% to 10% pay cut for staff from May 1 until Aug. 1 (May 16 until Aug. 1 in St. Louis).

BKD CPAs & Advisors

  • Layoffs (unconfirmed how many; told they were performance-based).
  • Partners taking pay cut (unconfirmed how much).
  • Annual raises could be smaller this year.

Burr Pilger Mayer BPM

  • Layoffs (unconfirmed how many; told they were performance-based).
  • Some staff furloughed.
  • 25% pay cut for partners.
  • 4% to 10% pay cut for staff.
  • Some employees may be urged/forced to take a part-time schedule.

[Source: Tips to GC]

Carr, Riggs & Ingram

  • 10% pay cut for staff, 20% for income partners, and 30% for equity and retired partners, from May 1 to Sept. 30.

Cherry Bekaert

  • An estimated 50 to 70 people were laid off.
  • 5% pay cut for staff/seniors, 10% for managers, 12.5% for senior managers, and 15% for directors.
  • Estimated 15% reduction in partner draws.

Citrin Cooperman

  • 5% to 10% of firm’s workforce laid off.

[Source: Tip to GC]

CliftonLarsonAllen

  • 10% pay cut for employees firm-wide from May 1 until Dec. 31.
  • 25% reduction in partner distributions from May 1 until Dec. 31.

CohnReznick

  • Between 50 and 120 people let go (told they were performance-based).
  • Between 50 and 90 people furloughed beginning on May 1, ranging from 30 to 120 days (with benefits).
  • 7% to 10% pay cut for all staff from June 1 until Sept. 30.
  • 25% cut in partner pay.
  • Mandatory 37.5 hours PTO must be taken before July 31.
  • Salary adjustments or bonuses connected to summer promotions deferred to the fall.

Crowe

  • Between 300 and 400 people were laid off.
  • 15% pay cut for partners.
  • 10% pay cut for officers.
  • No employee bonuses.
  • No annual salary increases.
  • Virtual summer internship program from June 1-30.
  • 401(k) plans: Firm is not contributing the age-based portion, but Crowe is continuing with the 2.5% maximum match.

Deloitte Australia

  • 20% pay cut for employees for five months.
  • 20% pay cut for non-equity partners.
  • Up to 25% reduction in equity partner pay.

[Source: Australian Financial Review]

Deloitte Canada

  • An estimated 3% to 4% of the total workforce, across all service lines, was let go (Range: 300-400 people).
  • Reduction in equity partners’ compensation (rumored at 30%).

Deloitte Ireland

  • 30% reduction in partner pay.

[Source: Irish Times]

Deloitte UK

  • Approximately 20% reduction in partner annual earnings.
  • Partner profit distributions deferred.
  • No annual salary increases.
  • Bonuses reduced and deferred until later this year.

[Source: Reuters]

Deloitte US

  • 5% of the total workforce firmwide will be let go starting the first week of June (advisory and consulting will be the most impacted).
  • 1.5% of remaining staff will be on a reduced work schedule and having reduced pay.

Dixon Hughes Goodman

  • 17% of workforce being furloughed for 90 days starting on May 1, will still receive health benefits.
  • 5% to 15% pay cut for all staff beginning May 15.
  • No bonuses this year.
  • Firm stopped contributing to employees’ 401(k) plans on April 1.
  • Partners taking pay cut (unconfirmed how much).

EisnerAmper

  • 44 people laid off (received severance package and three months of COBRA).
  • 20 employees have been furloughed.
  • Partners forgoing monthly compensation unless they meet billing/collection targets.

Elliott Davis

  • 10% of firm’s workforce laid off.
  • 8% pay cut for employees firm-wide for three months.
  • Partners taking larger pay cut (unconfirmed how much).

EY Australia

  • 20% pay cut and hours cut for staff and partners who are underutilized.
  • Recruitment freeze.
  • Discretionary spending cut.

[Source: Australian Financial Review]

EY Ireland

  • 20% cut in partner profit distribution.

[Source: Irish Times]

EY Netherlands

  • Issued a capital call to its partners; total contribution equaled tens of millions of euros.

EY UK

  • 20% reduction in partner profits.

[Source: City A.M.]

EY US

  • No performance-based bonuses in FY 2020.
  • Partners taking deferred or lowered distributions.
  • Senior manager promotion bonuses eliminated (had been $8,000).
  • Manager promotion bonuses lowered from $6,500 to $5,000.
  • Promotions for partners, principals, executive directors, and directors deferred until Oct. 1.
  • Midyear promotions (April/May) pushed back and will be re-evaluated.
  • Hiring freeze.
  • Virtual summer internship program from July 6 to Aug. 7.
  • International Intern Leadership Conference in Orlando canceled.

[Additional source: Tip to GC]

Friedman

  • 52 people laid off across all service lines (audit, tax, consulting).

Grant Thornton Canada

  • Layoffs (unconfirmed how many) at offices in Toronto, Markham, and Mississauga, Ontario.

Grant Thornton UK

  • 300 employees’ pay and hours cut.
  • 150 staff agreed to voluntary reduction in hours and pay cut of up to 40%.
  • Deferred profits dividend due to be paid to partners this summer.

[Source: Financial Times]

Grant Thornton US

  • 25% reduction in monthly draws for partners and principals through July 31.
  • 20% pay cut for managing directors on firm’s National Leadership Team through July 31.
  • Partners and principals will contribute to a capital call.
  • Job cuts (unconfirmed how many; told they were performance-based).
  • No raises or bonuses (only those promoted will be eligible for raises).

Grassi & Co.

  • 11 people laid off from New York City office.

[Source: Tip to GC]

KPMG Australia

  • 200 people laid off.
  • 20% pay cut for staff who make more than $62,000.
  • 17% reduction in pay of equity partners.

KPMG Canada

  • Layoffs in the Toronto, Calgary, and Vancouver areas, unconfirmed to be around 200 people let go.
  • Approximately 25% reduction in partner draws.

[Additional source: The Globe and Mail]

KPMG Ireland

  • Up to 40% cut in partners’ overall remuneration for a period of 12 months.

[Source: Irish Times]

KPMG US

  • 50% reduction in draws for partners through Sept. 30.
  • No variable compensation in FY 2020.
  • Hiring freeze.
  • Reduced capital investment.
  • No Encore awards in FY 2020.
  • No summer gifts to employees in FY 2020.

Marcum

  • Layoffs (unconfirmed how many; told they were performance-based).
  • Bonuses deferred until after June 30 but not canceled.
  • Everyone must take half of PTO by July 31.
  • Employees asked to go on PTO, sabbatical, or even voluntary unpaid time off with benefits.

Marks Paneth

  • Layoffs from all offices (unconfirmed how many; told they were performance-based).
  • 10% to 30% in monthly distributions for partners.
  • Consideration of bonuses and raises deferred until Jan. 1, 2021.
  • Employees are required to use no less than one week of their accrued PTO prior to June 30.

Mazars Ireland

  • 25% cut in partner earnings.

[Source: Irish Times]

Mazars UK

  • 200 staff furloughed.
  • Partners’ pay will be cut by a quarter.

[Source: Financial Times]

Mazars USA

  • About 85 people, or 10% of the workforce, were laid off.
  • 5% to 10% pay cut for staff effective May 1.

MGO

  • Layoffs (unconfirmed how many).

[Source: Tip to GC]

Moss Adams

  • 20% income reduction for partners through December 2020.
  • 5% to 20% salary reduction for everyone else beginning May 15, to be reassessed in four months.
  • 370 employees subject to 90-day furlough.
  • 240 employees subject to reduced work schedules for 90 days.

Nichols Cauley

  • No partner disbursements.

[Source: Tip to GC]

Prager Metis

  • Layoffs (unconfirmed how many).
  • 20% pay cut for staff across the board.
  • Furloughs.

PwC Australia

  • Up to 40% pay cut for underutilized staff.
  • 30% to 40% cut in partners’ annual income.
  • Four-day workweek from May 1 until the end of June, with corresponding reduction in pay.
  • Three-day workweek for certain teams with low utilization.
  • Raises and bonuses deferred for all partners and staff.
  • New partner admissions delayed from July 1 until Jan. 1, 2021.

PwC India

  • 25% pay cut for executive directors and partners.
  • Raises, bonuses, and promotions deferred for all staff.

PwC Ireland

  • 30% pay cut for partners.

[Source: Irish Times]

PwC Malta

  • Approximately 10 people laid off who recently joined the firm (mostly migrant employees who migrated to Malta) but due to COVID-19 were let go.

[Source: Tip to GC]

PwC Switzerland

  • Promotions and raises deferred.
  • 20% salary reduction for partners.

[Source: Inside Paradeplatz]

PwC UK

  • Raises, bonuses, and promotions deferred for all staff.
  • Annual partner payouts may be withheld.

[Source: City A.M.]

PwC US

RSM US

  • Layoffs on April 21 (unconfirmed how many, told they were performance-based).
  • Partners are taking a decrease in expected earnings.
  • Hiring freeze.
  • Virtual summer internship program.
  • NEW: Approximately 250 employees let go on May 18 in both external (audit, tax, consulting) and internal (HR, recruiting, L&D) services.
  • NEW: One-third of talent acquisition team furloughed for two to three months without pay (still will receive benefits).

RubinBrown

  • 51 employees furloughed for approximately 90 days; furloughs will be unpaid, but affected employees will still receive benefits.
  • Firm-wide compensation adjustments and bonuses deferred from May to December.

SingerLewak

  • Approximately 25% of staff laid off on April 3.

[Source: Tips to GC]

Weaver

  • 60 to 70 people laid off across multiple service lines and offices.
  • 50% of partners’ cash distributions temporarily delayed.

Whitley Penn

  • Layoffs (unconfirmed how many).
  • Partners’ pay was cut (unconfirmed how much).

Wipfli

  • 5% of staff will be laid off.
  • Furloughs are being considered.
  • Partners’ pay was cut (unconfirmed how much).

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Related articles