The move affects about 1% of Deloitte's UK workforce, and is thought to target people at the company who are seen as under-performing
12:15, 23 Oct 2024
Deloitte has axed 250 jobs in the UK, marking the latest wave of cuts among the so-called Big Four accountancy and consulting firms.
The move impacts roughly 1% of Deloitte’s UK workforce, and is believed to target individuals within the company who are perceived as under-performing. An insider revealed that the cuts form part of a "performance management" process at the firm.
They also confirmed that those affected have "received appropriate payments for notice". The Big Four, which also encompasses EY, KPMG and PwC, recruited heavily during the Covid-19 pandemic due to a surge in deals and demand for their services.
However, over the past 18 months, they have all been shedding staff amid a relatively slow market for corporate consultants. Last year, EY cut around 300 jobs, PwC initiated a round of layoffs this summer, and KPMG axed over 200 roles at the end of last year while freezing pay for 12,000 of its 17,000 UK employees.
Deloitte’s UK branch saw revenue increase by 2.4% for the year to May, representing a significant slowdown from the 14% rise seen over the previous 12 months. Its consulting division was responsible for the slowdown, with sales falling 1% to £1.58bn as companies reduced their reliance on external advice from firms like Deloitte.
Meanwhile, the company’s UK partners pocketed an average of £1.01m for the 12-month period, down 5% year on year. Deloitte has been undertaking a significant revamp, consolidating its internal framework to four key business areas—audit, strategy, technology, and tax—from five divisions before.
Richard Houston, Deloitte’s UK senior partner and chief executive, commented: "This is a strong set of results in a challenging market, against a difficult economic and geopolitical backdrop. Like many businesses, we had to carefully consider our cost base and make some difficult choices this year."