Deloitte, EY and PwC have announced pay cuts in the UK of 20%.
Then Bloomberg posted an article that the 20% pay cuts in the UK might not be enough. The firms in the UK might also have to lay people off.
One of the reasons that bloomberg said that they might have to lay people off is because the accounting firms don’t hold that much capital.
The articles also highlighted that BDO has already furloughed people in the UK. BDO also cut pay for partners by 25%.
This will have to change in the future or the accounting firms won’t do well if a second wave of the coronavirus hits.
I think that it is likely that the accounting firms will have to lay people off in the UK and Australia.