Demise of EY’s Project Everest Stems From Self-Inflicted Wound, said the Bloomberg

EY cancels ‘Project Everest’ after months of wrangling, was the headline of International Tax Review

Project Everest Burned a Bigger Hole in EY’s Pocket Than We Thought, remarked Going Concerned

Ernst & Young Halts Breakup Plan After Revolt by U.S. Leaders, headline put by Wall Street Journal

But why was it India and Indian workers of EY who perhaps faced the maximum brunt of “failed operation” while EY India accounts for only 8 percent to 10 percent of the overall costs????

The collapse of EY’s “Project Everest” spin-off in April 2023 has clearly had widespread consequences, affecting operations and employees globally, including those in India. While the US$ 700 million restructuring cost primarily impacted EY’s headquarters and key global offices, it has put unexpected and disproportionate strain on EY India, which only accounts for 8-10% of the overall costs. At least, some senior-level former workers pf EY India, who spoke to www.indianpsu.com on conditions of strict anonymity, think on thee lines. They feel that the staff of the organization working in India, for no rhyme, reason or responsibility behind this doomed project, has bore the maximum brunt of what has happened, in terms of layoffs, uncertainty, delayed promotions, salary reviews and a host of problems.

The aftermath has led to significant challenges for employees, as detailed outlined below :

1) Job Uncertainty and Layoffs: EY India has reportedly seen more layoffs than in other global regions, with many employees subtly pressured to resign. The use of unwarranted Performance Improvement Plans (PIPs), often lacking objective data, appears to be a mechanism to encourage voluntary exits under the guise of performance issues. This practice has raised concerns among former employees, who are noting similar patterns and stories.

2) Delayed Promotions and Salary Reviews: The financial strain has led to budget cuts in EY India, resulting in delayed promotions, salary reviews, and compensation freezes. Employees like Annie, who have had to shoulder the workload of multiple colleagues, are working under immense pressure without adequate reward or recognition. The increased workload without corresponding compensation is a major source of discontent.

3) Workload Shifts: As EY India continues its internal reorganization to become leaner, there has been a significant shift in workload. Employees are facing higher-than-usual demands, as teams are downsized, and resources are stretched thin. This has further exacerbated the challenges for those who remain, leading to burnout and diminished productivity.

4) Morale Impact: The global instability of EY, compounded by negative headlines and the ongoing restructuring, has taken a toll on employee morale in India. The sight of colleagues being laid off or quietly leaving the office due to PIPs has fueled a sense of insecurity among the remaining workforce. Job security concerns have become widespread, and the lack of transparency from EY India’s leadership only deepens the anxiety among employees.

5) Lack of Transparency: Perhaps most concerning is the lack of communication and transparency from EY India’s management. The local leadership has reportedly failed to escalate the issues affecting Indian employees to global partners. This has resulted in an uneven distribution of the burden of restructuring costs, with India seemingly bearing a disproportionate impact compared to its cost contribution.

Overall, it seems that EY India employees are still facing the brunt of a global crisis that should have been more equitably managed. Inaction from EY’s global and Indian leadership, the situation could deteriorate further, with more cases like Annie’s becoming a norm. The firm needs to take immediate steps to address these grievances and provide clearer communication to alleviate the growing frustration among its workforce.

Repeated emails in this regard by www.indianpsu.com, to Janet Truncale, EY Global Chair and CEO and to Rajiv Memani, Chair, EY Global Growth Markets Council (GMC), EY India Chairman and Regional Managing Partner, elicited no response whatsoever.