Deloitte is closely examining its ‘cost base’ and undergoing a restructuring exercise. This will reportedly take away 180 jobs in its UK advisory divisions. Barely one per cent of the UK workforce will be impacted.
As per a Financial Times report, the impacted employees in the strategy, risk and transaction, as well as tech and transformation divisions have been informed of the job cuts.
This is not a sudden move because Deloitte had revealed intentions to do away with 800 roles in September 2023.
While work in the tech transformation space had increased manifold during the pandemic, the same has waned now. The pace of mergers and acquisitions has also slowed down considerably affecting demand for financial services advice.
There was a one per cent dip in revenue in Deloitte’s consulting division, while a two per cent drop was witnessed in the financial-advisory services.
Revenue for Deloitte UK for the year ended 31 May, 2024 had gone up by 2.4 per cent to € 5.7 billion. The distributable operating profit in line with last year was € 756 million, while average profit per equity partner dropped by five per cent to 1.012 million as per the FT report.
However, Richard Houston, senior partner and CEO, Deloitte UK, revealed that although certain difficult choices had to be made, people were recognised for their efforts with “sustained promotion levels and investments in reward and benefits”, which is why there was a five per cent hike in average pay and bonuses.
