The accounting and consultancy giant EY has delayed the start of jobs for some of its new hires amid an industry slowdown.

The Financial Times reported on Sunday that around 200 US recruits due to join EY-Parthenon, the firm's strategy division, in either November or January will now not begin work until mid-2024.

EY confirmed the deferrals to Business Insider on Monday, saying in a statement the decision reflected "the current M&A environment and our business needs."

"This will help ensure that our new joiners have the quality and breadth of assignments to ensure a successful start and strong professional trajectory," it added.

The firm has also reduced the number of internships available next summer and cut pay by roughly 2% for some of its US partners, the FT reported.

EY-Parthenon Bosses explained the decision on an internal call, saying that the disappointing market for M&A deals and limited private equity activity had slowed advisory revenue growth more than expected since the start of the firm's fiscal year in July, the FT reported.

EY said in its statement to Business Insider that the affected recruits would receive stipends to assist them in the interim period. A source told the FT that the stipends would be between $12,000 and $35,000.

It's the second year running that the Big Four firm has delayed start dates for new hires. EY pushed back start dates twice in 2023 and also made at least 300 job cuts in its advisory wing.

But it is not alone in scaling back. Major competitors like Deloitte, PwC, and KPMG have also been struggling with slower demand for their consultancy services.

M&A activity, a key source of demand for consultancies, has declined since 2022. The number of M&A transactions was down 25% in the first half of 2024 compared to the same period in 2023, according to PwC's report on Global M&A Industry trends.

The downturn in demand has hit especially hard after many firms hired during the pandemic to handle growth as companies flocked to them for advice on navigating the pandemic. Now, without enough work to go around, they're shedding jobs.

However, consulting firm bosses are optimistic about a rebound in the M&A market and the promise of returns on AI and future technologies.

Though transaction volumes were down globally, the value of M&A deals rose by 5% in the first half of 2024. That was largely driven by megadeal activity in the technology and energy sectors, according to PwC.