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BDO has launched a cull of dozens of UK partners as it seeks to open up senior roles for younger staff at the country’s fifth-largest accounting firm.
It plans to cut 31 partners, about 6 per cent of the total, according to people familiar with the matter.
The partners leaving the firm were mainly older staff who were expected to retire soon or hires from rivals, the people added.
The move comes amid a downturn for professional services, as the industry faces growing pressure from the rise of AI. Last week, KPMG announced to staff it would axe 600 jobs as part of restructuring efforts.
Last year, BDO’s profits dropped 7 per cent while the average payout for its equity partners fell from £681,000 to £589,000.
Professional services firms such as BDO are owned and managed by their most senior staff, a business model that relies on developing a pipeline of younger employees who will progress to the top ranks.
Demand for consultants boomed during the pandemic when companies sought advice on issues such as supply chain management and updating technology. Consultancy firms hired accordingly but the worsening economic outlook has left many overstaffed.
BDO also benefited from a surge in demand from midsized UK businesses, as the Big Four — Deloitte, EY, KPMG and PwC — pulled back from some areas following heightened scrutiny of the sector after the collapses of contractor Carillion and retailer BHS.
BDO said: “In the current economic environment, BDO needs to be in the best shape possible to advise the UK’s entrepreneurial, growing and ambitious businesses, our mid-market heartland. To ensure we are a partnership operating at peak performance in high-growth areas, a small number of partners from each business area is leaving the firm, with some partners having brought forward their existing retirement plans.”
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