In an attempt to slash costs, Grant Thornton has cut the pay and hours of 300 UK employees whose workload has declined due to the coronavirus pandemic. The UK’s sixth-largest accounting firm told its 4,500 employees that consulting team would bear the brunt of the pay cuts. Some administrative and marketing staff will also see a reduction in their hours and pay.
Grant Thornton said it would not use the government-funded furlough scheme because it had “assessed our own business against the criteria for using the furlough scheme” and decided it was not “appropriate”. Chief executive David Dunckley said that the firm would ensure that no affected employee was worse off as a result of its cost-cutting measures than if they had been placed on the government’s furlough scheme. The firm has guaranteed to pay salaries of affected staff up to £3,125 a month, compared with the government’s commitment to pay 80 per cent of a furloughed individual’s wages.
“While parts of our business continue to thrive and some are busier than ever, certain areas have been severely impacted by the implications of Covid-19,” said Dunckley. “This crisis could impact any of us at any time, and we should all be able to expect the support and backing of our colleagues and our employer.” About 150 staff members have already agreed to a voluntary reduction in their hours and pay of up to 40 per cent. It is the latest measure introduced by a large accounting firm to cope with coronavirus.
