Grant Thornton is laying off about 350 U.S employees as it prepares to sell a stake in its US unit to private equity firm New Mountain Capital.
The layoffs, representing about 3.5 percent of the firm’s US workforce, affect employees in advisory, audit, and tax roles up to the level of managing director.
According to sources, the Chicago-based accounting firm is in the process of notifying the affected employees this week.
Grant Thornton said these staffing adjustments are targeted and reflect the evolving demand in certain business segments.
Despite these cuts, the firm stressed its continued investment in growth and its strong fiscal year performance trajectory.
This move follows a series of layoffs over the past year.
In May of last year, Grant Thornton cut around 300 jobs, primarily in advisory and tax, and nearly 200 more in advisory in November.
The firm employs about 9,700 people in the US and nearly 72,900 globally.
Its headcount has increased 6.3 percent as of September 2023 compared to the previous year.
Grant Thornton stressed its continued investment in growth and its strong fiscal year performance
The US division reported revenues of $2.4 billion for the year ending in July 2023, up from $2.3 billion the previous year.
Need Career Advice? Get employment skills advice at all levels of your career
Like many others in the professional services industry, the accounting firm has faced weaker demand in certain areas due to higher interest rates and challenging economic conditions.
Many firms have increased hiring to address changes brought about by the pandemic.
However, lower-than-expected attrition rates over the past few years have necessitated workforce reductions.
Other major firms in the industry, including Ernst & Young and KPMG, have also undertaken layoffs, which in some cases included partners.
Grant Thornton’s current restructuring occurs as it aims to finalize the stake sale to New Mountain Capital this quarter.
The transaction, pending regulatory approval, would make Grant Thornton the largest accounting firm to sell a portion of itself to a private equity firm.
