EY reduces headcount and costs under CEO Janet Truncale

Core Insights - EY has reduced its central headcount and financial contributions from member companies during Janet Truncale's first year as global CEO, with global headquarters collecting $1.8 billion from national partnerships, unchanged from the previous year, despite a 4% increase in total revenue across the network [1][5] Financial Performance - The global assessment fee dropped to less than 3.5% of member companies' combined revenue, down from above 4% prior to the collapse of Project Everest in 2023 [2] - Member companies paid an additional $3.2 billion for centrally provided services in the most recent financial year, a decrease from $3.4 billion in the year to June 2024, indicating a focus on cost reduction [5] Workforce Changes - The number of staff employed directly by EY's central body declined by 8% to 964 in the year to June [2] Organizational Structure and Strategy - The failure of Project Everest highlighted the limitations of the central body's authority over the US member firm, prompting a strategic reset by Truncale, which includes cutting management layers and promoting cross-regional collaboration [4] - EY operates as a network of locally owned partnerships supported by a central entity that provides various services, with member companies occasionally resisting financial demands from the global office [3]