Deloitte plans sweeping reorganisation to cut costs
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The news: Deloitte has launched the largest restructure of its global operations in ten years as it seeks to cut costs amid a market slowdown, according to an internal email to firm partners seen by the Financial Times.
The numbers: Deloitte currently employs around 455,000 people across the globe, and with revenues increasing 15% to USD65 billion ($99 billion) during FY2023 it is considered the largest of the big four consulting firms.
The context: CEO Joe Ucuzoglu is leading the project which will take place over the space of 12 months, and will be implemented across the over 150 countries in which Deloitte currently operates. A core part of the restructure will see Deloitte’s key five business units reduced to four, which will include: audit and assurance; strategy, risk and transactions; technology and transformation; and tax and legal.
In the email seen by the FT, Ucuzolgu explains that the plan aims to reduce complexity, freeing up more partners to work with clients rather than manage staff internally.
The sector is anticipating a challenging year ahead as an uncertain economic context continues to stifle company spending. Additionally, the big four have weathered a challenging year as the fallout of a series of scandals continues to impact how the consultants must reassess governance frameworks.
The source: Financial Times
