Reported earlier today by Financial News, Deloitte UK is cutting approximately 3 percent of its workforce or more than 800 people. The cuts are concentrated in consulting, financial advisory, and risk advisory though a few audit and business services folks also got the axe. FN cites slowing demand in the second half of the year and low attrition as the drivers behind today’s cutting of fat.
Said Deloitte UK chief executive Richard Houston via statement:
“Today we announced some targeted restructuring across our businesses, which may — subject to consultation — put some roles at risk of redundancy. This follows a slowdown in growth, which, combined with the ongoing economic uncertainty, means we have to consider the shape of our business. I fully understand this is an unsettling time for those people affected and we will be doing everything we can to support individuals with care and respect.”
It was just six days ago that Deloitte Global announced record-breaking revenue of $64.9 billion for its last fiscal year, not only a record for Deloitte but for every global accounting firm ever in the entire history of global accounting firms. As FN reported last September, distributable profit at Deloitte UK was up 21 percent to £711 million ($888 million USD) for the year to May 31, 2022, bringing last year’s average profit per partner to £1.05 million.
The layoffs will continue until morale attrition improves.
Hopefully the recent 1,700 new graduates and apprentices will do a better job off having an appropriate attrition rate.