BDO culls senior partners to clear path for younger staff
Leading mid-tier advisory firm BDO is set to cut around 6 per cent of its total partner headcount, targeting older partners.
The firm is set to axe 31 partners, mainly older staff who were expected to retire soon, or hires from rivals, as it seeks to open space for younger staff, according to the Financial Times.
A spokesperson for the firm said: “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.”
The professional services sector, especially the Big Four, is facing a plethora of challenges, from a downturn in work to problems with its attrition model.
These cuts at BDO come on the heels of the Big Four giant KPMG, which announced last week that it would axe 600 jobs as part of restructuring efforts.
Since the surge in demand for consultants during the pandemic, the downturn in work at the firms has resulted in redundancy round after redundancy round.
Firms like BDO also rely on developing a pipeline of younger employees who will progress to senior management.
However, the pipeline at mid-tier and smaller firms is also a concern for firms. Recent data suggests that small- to mid-tier accountancy firms are facing staffing shortages, hindering growth.
Louise Sayers, head of audit, people and culture at BDO, recently told CityAM that the accountancy sector faces a “perception problem” among younger talent.
Last month, BDO, in partnership with Connectr, launched a new work experience programme, targeting students in Years 9, 11, 12, and 13.