According to the Financial Times report, Deloitte has initiated its most extensive global restructuring in a decade. The move aims to cut costs and streamline operations amidst an expected market downturn.
Deloitte’s restructuring plan entails reducing its main business units to four: audit and assurance, strategy, risk and transactions, technology and transformation, and tax and legal.
This shift streamlines operations, consolidating from five units established since 2014. The move aligns with cost-saving measures and market anticipation strategies, as reported by the Financial Times.
The report noted that Deloitte had not quantified the savings from its restructuring. Joe Ucuzoglu, the global chief executive, conveyed in an email to partners that the plan aimed to “free up” additional employees for client-facing work rather than internal management.
Deloitte, boasting a workforce of approximately 455,000 individuals globally, seeks efficiency gains through this restructuring, aligning resources with client needs, as articulated in Ucuzoglu’s communication and the report’s analysis.
Deloitte’s global revenues surged by 15% to reach $65 billion in its previous fiscal year, solidifying its position as the leading member of the Big Four. Nonetheless, the UK consulting market is poised to face stagnation this year, marking the first time since 2020, as it grapples with a challenging economic environment.
Despite Deloitte’s global success, regional variations reflect broader economic conditions impacting consulting sectors differently, as highlighted by the UK’s anticipated growth standstill.
Deloitte’s restructuring follows CEO Ucuzoglu’s decision not to emulate rival EY’s attempt to split its firm between consulting and audit services, opting for a different strategic direction.
According to the email to partners cited in the FT report, the new structure is anticipated to be fully implemented by June 2025, with member firms beginning implementation as early as June. This timeline underscores the urgency and strategic importance Deloitte places on the restructuring process.
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