EY retreats from legal expansion in UK

EY is restructuring its UK legal arm, leading to redundancies and a scaling back of its legal sector ambitions.
In a brief conference call, partners informed staff of the overhaul and redundancy consultation, affecting approximately 30 of the firm’s 160 UK legal employees. Some roles will be relocated to hubs in Manchester and Belfast.
This move follows previous job cuts within EY’s legal division, part of its tax practice, including the closure of EY Riverview Law. The firm’s legal footprint has diminished amidst wider cost-cutting measures across EY, impacting other divisions like EY-Parthenon.
EY’s foray into legal services, initiated in 2014 with an Alternative Business Structure (ABS) licence, has not yielded the anticipated market disruption. The firm’s abandoned “Project Everest”, which aimed to separate audit and consulting, had included plans for significant legal expansion.
The restructuring will focus on corporate law, company secretarial, tax litigation, and immigration, while other areas will see job reductions. EY cited a need to align its legal services with its broader business strategy.
Despite setbacks in the UK, other Big Four firms are exploring legal opportunities in the US, with KPMG recently obtaining a licence to practice law in Arizona.