Baker Tilly Layoffs: What You Need To Know
Are layoffs becoming the new normal in the accounting world? Baker Tilly, a prominent player in the industry, recently eliminated 180 positions, sparking concerns about the stability and future of its workforce, even as the firm looks ahead.
The news broke on June 21, 2023, thanks to a tipster who shared a screenshot of an email from Baker Tilly CEO Jeff Ferro. The message cited a "resource mismatch" as the reason behind the cuts. This move, while perhaps not entirely unexpected in the current economic climate, raises questions about the firm's long-term strategy and its commitment to its employees.
Baker Tilly, headquartered in Chicago, Illinois, is a large public accounting and consulting firm. However, it's worth noting that Baker Tilly Virchow Krause, LLP, operates as a private company, owned by its partners and not publicly traded. This structure could influence its decision-making processes, particularly in times of economic uncertainty.
The layoffs come at a time when the firm is likely contemplating its next moves. Will Baker Tilly pursue acquisitions to expand its reach and services? And if so, will these acquisitions be even more substantial than previous ones? The firm's acquisition of Squar Milner in 2020 for $130 million in revenue certainly made waves, propelling Baker Tilly into the top ten. The question now is whether future deals will be even flashier, and what implications those deals will have for the existing workforce and for the partners at the helm of the company.
Furthermore, the resignation of Alan Whitman, Chairman and CEO of Baker Tilly US, LLP, adds another layer of complexity. Whitman's departure, reportedly due to disagreements over the firm's strategic direction, suggests internal conflicts regarding the company's future. This situation leaves the company in a dynamic state, with decisions around strategy and layoffs possibly influenced by internal disagreements.
Baker Tilly has also shown a pattern of adjustments to its workforce. Information suggests that the firm frequently makes staffing adjustments, with the stated goal of right-sizing the organization, every year. However, these adjustments come with human costs.
Understanding the scope and impact of these layoffs requires looking at available data. While specific details are not always available, discovering that 3950 verified professionals are discussing Baker Tilly layoffs is an indication that this is a topic being monitored.
The internal dynamics of the firm are subject to some employee opinions. The satisfaction levels of current employees, expressed via Glassdoor reviews show some balance. The data suggests that 66% of Baker Tilly employees would recommend working there to a friend. Employees have rated the firm with a score of 3.4 out of 5 for work-life balance, 3.6 for culture and values, and 3.7 for career opportunities. As with any company, the data paints a picture of a place where employee satisfaction exists but is far from uniform.
It is crucial to note that Baker Tilly International, Baker Tilly Advisory Group, LP, Baker Tilly US, LLP, and other member firms of Baker Tilly International are independent entities. This means that no member firm has any liability for the actions or omissions of others. The use of the name "Baker Tilly" and its associated logo is done under license from Baker Tilly International Limited.
The recent layoffs have also sparked discussions, with some observing the situation and commenting on the partners' experiences. The comments highlight the challenges of a rapidly changing business climate, and some of the actions taken by the organization.
Additional data points can offer insights into the situation. In April 2020, there were reports of consulting and audit work sales. However, some layoffs may not be counted in the reported totals. For instance, aggressive Performance Improvement Plans (PIPs) and increased counseling outs may not be factored into the reported layoff numbers.
Looking at the broader landscape, it's essential to consider how other firms are navigating these challenges. For instance, there were pay cuts for partners at Grant Thornton. Such moves indicate that the accounting world is experiencing a period of adjustment.
The situation, as it unfolds, demands a closer look into the strategy and financial health of the company. In my view the buyers could be another PE firm, another fund controlled by the same PE firm, a larger firm such as BDO looking to take on compliance work to achieve greater economies of scale, or an ESOP plan. At least thats who I would look to sell to if I owned Baker Tilly. Also, they could take the company public cbiz style.
It is essential to look at the potential for acquisitions and understand that these moves are likely to have serious implications for the workforce, and it is important to monitor the impact on employees.
The question now is, how will Baker Tilly adapt to an evolving industry and a changing economic environment? Only time will tell how the firm navigates these critical junctures and secures its place in the accounting industry.
It is worth mentioning, that the news was posted on June 21, 2023 by Adrienne Gonzalez.
This year, the firm has made some additional
| Category | Details |
|---|---|
| Company Name | Baker Tilly |
| Industry | Accounting and Consulting |
| Headquarters | Chicago, Illinois, USA |
| Layoff Announcement Date | June 21, 2023 |
| Number of Employees Affected | 180 |
| Reason for Layoffs | "Resource Mismatch" (According to CEO Jeff Ferro's email) |
| Company Structure | Private (Baker Tilly Virchow Krause, LLP) |
| Recent Acquisitions | Squar Milner ($130 million in revenue, 2020) |
| Key Leadership Changes | Alan Whitman, Chairman and CEO of Baker Tilly US, LLP, resigned. |
| Employee Sentiment | 66% of employees recommend working at Baker Tilly (Glassdoor). |
| Work-Life Balance | Rated 3.4 out of 5 (Glassdoor). |
| Culture and Values | Rated 3.6 out of 5 (Glassdoor). |
| Career Opportunities | Rated 3.7 out of 5 (Glassdoor). |
| Other Related News | Grant Thornton had pay cuts for partners |
| Source | Baker Tilly Official Website |
