International accountancy firm Ernst & Young confirmed yesterday that it had reduced its Bermuda workforce as a "last resort" as economic conditions impact some parts of its business.

Various second-hand sources suggested that the company had let go between seven and 20 staff from its Bermuda headquarters at Reid Hall, in Reid Street, Hamilton, but this could not be confirmed.

The company did not disclose the exact number of job losses in a statement given in response to an inquiry from The Royal Gazette.

"We have challenged the efficiency of all of our operations given the current economic conditions impacting certain business areas," the E&Y statement said. "As a result of that process and a lower level of attrition, we have made some workforce reductions in certain geographies and functions.

"Making these reductions is very difficult and always a last resort for our firm. These decisions will allow us to continue providing the highest quality service to our clients.

"And, over the long run, this gives all of our people the best opportunities for growth and success. We continue to invest in the extensive learning and development of our people as well as recruiting of local students."

E&Y spokeswoman Kelly Ferris said there was nothing she could add to the statement.

E&Y, which is one of the "Big Four" global auditors, employs around 200 professionals in Bermuda and has 11 partners, according to the firm's website. Its global workforce is about 135,000 people.

The financial companies that make up the client base of companies like E&Y have been hard hit by the global economic downturn. Business news agency Reuters released figures on Friday which estimated more than 293,000 jobs had been cut worldwide in the financial sector since August 2007.

In Bermuda, insurance giant XL Capital Ltd. announced last August that it would reduce its Bermuda workforce by 47 and in November, investment company Fidelity International Ltd. said it had let go eight people from its Bermuda operation, a reduction of 11 percent of its local workforce.

Earlier this week, telecommunications company Digicel said it had offered its staff voluntary separation packages, anticipating the move would result in its workforce being cut by around 10 percent.

Aside from what has been confirmed publicly, it is understood that many more jobs are quietly disappearing through attrition.

In an interview last August with this newspaper, David Ezekiel, chairman of the Association of Bermuda International Companies, predicted how workforce contraction would occur in the financial sector as the downturn persisted.

"By attrition, by applying a hiring freeze, by not replacing people who are leaving or retiring," Mr. Ezekiel said. "In Bermuda, I think it's easier to do, because you have a fairly transient employment population. There is a high turnover of expatriates.

"And there are a fair amount of opportunities for good Bermudian staff and that also leads to turnover. Instead of redundancies, some might just be able to do this through attrition."