Sharp decline vs last year overall
TAXSPOC News Desk
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Ernst & Young (EY) reported growth in its global revenues for the fiscal year 2024 (FY2024), reaching US$51.2 billion, an increase of 3.9% in local currency. While this growth was more moderate compared to FY2023’s remarkable 14.2% rise, it reflects the firm’s resilience in an uncertain global economic environment. Tax services played a critical role in this performance, with tax-related revenues growing by 6.3% in local currency (6.7% in USD), although this was down from the 12.2% growth seen in FY2023.
OVERALL REVENUE GROWTH AND GEOGRAPHIC PERFORMANCE
Despite a global slowdown, EY’s revenue increased across all regions, though growth rates varied. The Americas saw modest growth of 2.7%, contributing US$24.1 billion in revenues. The Europe, Middle East, India, and Africa (EMEIA) region delivered a stronger performance, with a 6.9% increase, totaling US$19.9 billion. In contrast, the Asia-Pacific region remained flat at US$7.2 billion, a stark contrast to the 11.7% growth experienced in FY2023, likely reflecting challenges in key Asian markets.
WORKFORCE AND HEADCOUNT DECLINE
EY’s global workforce experienced a slight reduction in FY2024, with a total headcount of 392,995, marking a 0.6% decrease compared to the previous year’s 395,442 employees. This contrasts with FY2023’s headcount growth of 8.2%, reflecting the firm’s need to optimize its operations in response to market conditions.
The consulting service line, which had grown by 11.3% in FY2023, saw a minor workforce decline of 0.7%, reducing the number of employees to 117,900. Meanwhile, tax services experienced a 1.0% headcount decrease, bringing the total to 73,098, in contrast to a 7.9% increase in FY2023. The assurance service line, however, remained strong, with a 1.9% rise in headcount to 127,617 employees, further emphasizing the firm’s strategic focus on its core auditing business.
TAX SERVICES: KEY DRIVER IN PERFORMANCE
Tax services remain a key pillar of EY’s growth. In FY2024, the firm recorded a 6.3% revenue increase in local currency. Although the growth rate slowed from the previous year, tax services still made significant contributions to the firm’s overall financial performance. Tax-related demand, especially in an increasingly complex regulatory environment, continues to drive client interest, enabling EY to maintain strong results despite broader economic uncertainties.
TAX CONTRIBUTIONS TO GLOBAL SERVICE LINE GROWTH
EY’s Tax services were a key driver of overall service line growth. The following table highlights the performance of Tax relative to other service lines:
| Service Line | FY24 Revenue (US$ millions) | FY23 Revenue (US$ millions) | % Change (Local Currency) | 5-year CAGR (FY19-FY24) | % Change (US$) |
|---|---|---|---|---|---|
| Tax | 12,080 | 11,325 | 6.3% | 6.6% | 6.7% |
| Assurance | 17,299 | 16,357 | 6.3% | 6.6% | 5.8% |
| Consulting | 15,606 | 15,606 | 0.1% | 11.2% | 0.0% |
| Strategy and Transactions | 6,236 | 6,066 | 2.3% | 10.0% | 2.8% |
Tax’s consistent growth, alongside Assurance, was critical in sustaining EY’s overall revenue increase for the fiscal year.
STRATEGIC INVESTMENTS IN AI AND TAX TECHNOLOGY
EY continues to invest heavily in technology platforms that enhance its tax services. The firm’s core technology platform, EY Fabric, is now deployed in 180 countries, benefiting over 2 million unique users. Additionally, the integration of AI into tax processes, spearheaded by the EY.ai platform, is transforming how clients navigate complex tax regimes. This platform offers solutions that span strategy, transactions, transformation, and compliance, all augmented by AI to ensure accuracy and compliance with rapidly changing global tax laws.
Furthermore, EY has rolled out EYQ, a private and secure large language model (LLM) that supports its global workforce. Over 70% of EY’s employees have been trained in the responsible use of AI, while more than 75% have utilized EYQ in their roles, including tax professionals. The rollout of EYQ has helped the firm streamline its tax advisory services, increasing efficiency and accuracy in client engagements.
COMPARISON FY 2023 VS FY2024
Here is the key data comparing EY’s financial performance, main initiatives, and workforce statistics between FY2023 and FY2024:
| Category | FY2023 | FY2024 |
|---|---|---|
| Global Revenues | US$49.4 billion (+14.2% in local currency) | US$51.2 billion (+3.9% in local currency) |
| Key Investments | US$3.6 billion in audit quality, innovation, technology, and people | Further AI and tech investments, launching EY.ai, and EYQ |
| Tax Revenue Growth | +12.2% in local currency | +6.3% in local currency (6.7% in USD) |
| Assurance Revenue Growth | +11% in local currency | +6.3% in local currency (5.8% in USD) |
| Consulting Revenue Growth | +21.6% in local currency | +0.1% in local currency (unchanged in USD) |
| Strategy and Transactions Revenue Growth | +8.4% in local currency | +2.3% in local currency (2.8% in USD) |
| AI and Technology | US$1.4 billion investment in AI, launching EY.ai platform | EY.ai platform scaled globally, EYQ deployed, and 70% of workforce trained in AI |
| Global Workforce | 395,442 employees (8.2% increase) | 392,995 employees (-0.6% decline) |
| Geographic Revenue Growth (Americas) | US$23.6 billion (+12.9%) | US$24.1 billion (+2.7%) |
| Geographic Revenue Growth (EMEIA) | US$18.3 billion (+16.9%) | US$19.9 billion (+6.9%) |
| Geographic Revenue Growth (Asia-Pacific) | US$7.5 billion (+11.7%) | US$7.2 billion (+0.0%) |
| Headcount by Service Line (Assurance) | 118,964 employees (+6.2%) | 127,617 employees (+1.9%) |
| Headcount by Service Line (Tax) | 76,873 employees (+7.9%) | 73,098 employees (-1.0%) |
| Headcount by Service Line (Consulting) | 121,973 employees (+11.3%) | 117,900 employees (-0.7%) |
| Headcount by Service Line (Strategy and Transactions) | 26,397 employees (+8.4%) | 25,483 employees (-3.5%) |
SOURCES/ RECOMMENDED READ:
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EY reports global revenue of US$51.2b for fiscal year 2024 | EY – Global
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EY reports record global revenue results of just under US$50b | EY – Global
AI investment alliances assurance services business strategy consulting ecosystem partnerships ESG EY EY.ai EYQ fiscal year 2024 global revenue Janet Truncale long-term value strategy and transactions sustainability tax growth technology platforms
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