Deloitte slashes jobs

Deloitte UK, a prominent figure in the global auditing and consulting sector, has unveiled plans to cut staff by approximately 3%, impacting over 800 positions among its 27,000-strong UK workforce. The move is a response to the current market conditions marked by slowing demand and decreasing staff attrition rates. 

The staff reductions are chiefly concentrated within Deloitte’s consulting, financial advisory, and risk advisory segments, with a minor number of employees in the audit group and business services division also facing potential job cuts. Employees were made aware of the impending job losses on September 13th, as part of a structured redundancy consultation process. 

Deloitte UK’s Chief Executive Officer, Richard Houston, has cited a combination of factors for this restructuring initiative, including a deceleration in growth and ongoing economic uncertainty. 

Houston acknowledged the unsettling nature of this period for affected individuals and emphasised the firm’s commitment to providing support characterised by care and respect.

Deloitte’s decision mirrors a broader trend seen across the auditing and consulting domain, where firms initially expanded their workforce post-pandemic but are now confronted with the need to streamline operations and reduce staffing levels due to waning demand and a more sluggish job market.

Workforce analytics firm Revelio Labs’ data illustrated a stark decline of over 40% in staff attrition rates at the Big Four firms in the UK during the year leading up to July. This decline is symbolic of the broader challenges that the job market is currently experiencing.

Alongside Deloitte’s announcement, global management consulting firm McKinsey initiated its own restructuring move earlier this year, potentially jeopardizing up to 2,000 jobs, mainly within its support functions. Investment banking giants like Goldman Sachs, Citigroup, and Morgan Stanley have also undertaken substantial job cuts in response to economic factors.