Janet Truncale Leads EY Through Cost-Cutting and Strategic Restructuring

Janet Truncale’s first year as CEO of Ernst & Young (EY) has been marked by significant cost-cutting measures and a strategic refocusing of the global organization, following the collapse of the ambitious Project Everest consulting spin-off. These changes aim to streamline operations and prioritize investments in key growth areas like artificial intelligence (AI) and sustainability.

Cost Reduction Measures

EY has implemented staff reductions and increased efficiency across its global operations under Truncale’s leadership. Annual accounts filed with the UK’s Companies House reveal that the global organization levied $1.8 billion from its national member firms in the year ending June 27, 2025 – the same amount as the previous year, despite a 4% increase in overall network revenue.

This resulted in a reduction of the “global assessment” – the percentage of member firms’ total revenue taken by the global body – to less than 3.5%, a decrease from the historical rate above 4% prior to the failed spin-off attempt in 2023. The number of personnel working directly for the global organization decreased by 8% to 964 during the same period.

Restructuring and Strategic Shift

The restructuring efforts are a direct response to the failed Project Everest spin-off, which exposed limitations in the global organization’s power and highlighted tensions with the US member firm. Truncale has prioritized fostering cooperation between regions and sectors, eliminating a management layer and returning some activities to the member firms.

In addition to the global assessment, member firms contributed a further $3.2 billion in fees to the central body for services like shared technology, a decrease from $3.4 billion the previous year, reflecting the broader focus on cost savings, including technology procurement.

Investment in Future Growth

Despite the cost-cutting measures, EY is strategically investing in areas poised for growth. A company spokesperson stated, “EY continues to make strategic and deliberate choices that drive quality and globally connected client services. With continued global revenue growth, these choices are enabling us to create additional investment capacity for technology and massive bets such as AI, managed services and sustainability.”

Truncale’s Background

Janet Truncale assumed the role of CEO after previously serving as the vice chair and regional managing partner of EY’s Americas Financial Services Organization .

Recent Developments

Recent reports indicate EY is similarly narrowing its US leadership race to three candidates, including Alex Bender, an assurance partner .