Deloitte initiates biggest global overhaul in a decade: Here's why
Deloitte, a titan among the Big Four accounting firms, has set in motion its most significant global overhaul in a decade, as reported by the Financial Times. The primary goal is to reduce costs and streamline organization in anticipation of a market slowdown. This restructuring will consolidate Deloitte's main business units from five to four. Presently, the five units are: audit and assurance; strategy, risk and transactions; technology and transformation; tax; and legal.
Restructuring aimed at boosting client engagement
As detailed by Deloitte CEO Joe Ucuzoglu in an email to partners, the restructuring plan is designed to "free up" more personnel for client interaction rather than internal management. It is uncertain if the move would lead to layoffs. The precise savings from the overhaul are yet to be determined. The firm boasts a global workforce of approximately 4.55 lakh employees. The new structure is slated for full implementation by mid-2025, with the process starting in June this year.
Deloitte is against division of the firm
Unlike its rival Ernst & Young, Deloitte has opted against splitting its firm into consulting and audit divisions. The strategic move by Ucuzoglu comes amid an expected stagnation in the UK consulting market for the first time since 2020. Despite the hurdles, Deloitte's global revenues witnessed a 15% surge to $65 billion in its last fiscal year, reinforcing its standing as the largest of the Big Four accounting firms.
Big Four firms are laying off workers
It is reported that the decline in consultancy fees due to an economic slowdown has caused the Big Four consultancy firms to ask workers to leave. Since February 2023, Deloitte, Ernst & Young, KPMG, and PwC have fired more than 9,000 employees through various rounds of layoffs across the US and UK. The layoffs have also been reported from Australia and Canada.