Grant Thornton said that some teams in areas where the firm was less busy would be working “reduced hours in the short to medium term” in an attempt to preserve jobs without implementing the government’s furlough scheme.

The firm is one of the UK’s largest second-tier accountancy companies and has estimated that its profits for the year will be 20% below its previous expectations thanks to the outbreak of the virus.

A spokesman for the company said: “Although we entered this unprecedented period in an overall strong financial position, our lead economic indicators now suggest that the firm’s profits for 2020 will be materially impacted.

“We have assessed our own business against the criteria for using the furlough scheme and we firmly believe the appropriate option for our firm is for the owners of our business, the partners, to invest in our people in this situation, despite the probable fall in partner earnings.”

The firm said that earnings for affected staff would be guaranteed at a level that left no one employees worse off than if the firm had utilised the furlough scheme which guarantees 80% of an employee’s wages.

Grant Thorton reassured staff that if trading conditions improve beyond its revised projections by the end of 2020, then those who have faced salary reductions “will share in the increased profitability”.

Around 150 UK employees had already agreed to a 40% pay cut or a voluntary sabbatical, The Times reports. 

Grant Thornton has also announced that it will be suspending its dividend which was due to be paid this summer, however, the firm’s UK partners have not been subjected to a pay cut. 

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