Highlight of the Week
EY Faces Knotty Split of Its Lucrative Tax Business
- As EY is facing some complex challenges as it dives into the details of its planned division into both a consulting business and an audit business.
- EY employs around 70,000 tax professionals whose expertise is used both in auditing and consulting. EY now must decide the best way to divide this valuable human resource.
- EY currently plans to send one-quarter of its tax professionals to the audit practice while the rest move into the consulting practice.
U.S. Home Sales and Prices Fell in August as Mortgage Rates Rose
- Both home sales and home prices fell last month. While down from the peak during the spring 2022, home sales and home prices are still up from a year ago.
- The Fed has been hiking rates to combat rising inflation which has led to the slow down in the housing market
- High prices and the rising rates mean that home-buying is at the least affordable level in decades
Gap Is Cutting 500 Corporate Jobs
- Gap Inc. is cutting 500 corporate jobs in the wake of falling sales and profits
- Gap Inc. has seen a slump in sales from its flagship brand and the Old Navy chain due to unsuccessful investments in “inclusive clothing sizes” and a general decease in consumer demand for clothing goods.
- Experts point to rising inflation as the main culprit of the decrease in demand which is leaving consumers with less room in their budget for non-essential goods.