Business consulting service Ernst & Young (EY) is preparing to cut about 3,000 jobs, citing “overcapacity” and deteriorating macroeconomic conditions.

Shortly after spending $600 million on a failed deal to breakup its global advisory and audit divisions, EY’s senior partners are looking to slash all inefficiencies across the consulting firm, starting with the elimination of redundant jobs. “After assessing the impact of current economic conditions, strong employee retention rates and overcapacity in parts of our firm, we have made the difficult business decision to separate approximately 3,000 US employees,” said the company’s spokesperson, as cited by the Financial Times.

The axing of redundant roles will primarily focus on EY’s consulting business side, and will make up approximately 5% of the firm’s entire US headcount. “These actions are part of the ongoing management of our business and not a result of the recently concluded strategic review, known as Project Everest,” the spokesperson added, referring to the codename of EY’s failed deal.

EY, which has about 312,000 employees across more than 150 countries, has faced a number of scandals and failures over the past several years, including potential conflicts of interest with fellow accounting firms KPMG, Deloitte, and PwC.

Information for this briefing was found via the Financial Times and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.