Multinational professional services network Deloitte has announced plans to slash up to 100 jobs, as part of a restricting plan, amid the prolonged slowdown in deals activity.
The firm disclosed plans to restructure its corporate finance advisory business in order to focus on larger, sector-focused M&A activity. The company is proposing some targeted restructuring that would result in the reduction of 3% of its workforce of 27,000 in the UK.
Speaking on the restructuring plan, a spokesperson from Deloitte UK said,
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“We are considering restructuring parts of our advisory corporate finance business. This is in order to concentrate on larger, sector-focused M&A activity. As a consequence, we are proposing to close some parts of that business. We will consult on this with people in these teams over the coming weeks. This will undoubtedly be an unsettling time for those affected and we will be doing everything we can to support them”.
The move comes as Deloitte, one of the “Big Four” accounting firms, plans to focus on cost-cutting due to the slowdown in the second half of the current financial year as clients are being more cautious in their spending.
Also, the firm had warned that deals and advisory work were hit in the second half, reporting only 9% growth compared with other service lines, amid an increased caution among clients on spending and a slowdown in the M&A market.
Deloitte’s recent downsizing of its workforce comes on top of the 800 redundancies it announced in September last year, which was later reduced to about 700, as professional services firms contend with slowing demand from clients and rising costs amid a tougher economic environment.
In April last year, the Financial Times reported that Deloitte would slash around 1,200 jobs or 1.5% of its U.S. workforce. That was followed by KPMG’s announcement of laying off 5% of its workforce in June.
At the time, Richard Houston, Deloitte senior partner, and CEO, said,
“Looking ahead, the UK faces a challenging year, with the ongoing cost of living concerns, slow economic growth, rising geopolitical tensions and the climate crisis. Markets are expected to remain challenging and we have adjusted our plans in response”.
Deloitte’s restructuring highlights how some of the Big Four are continuing to cut jobs into 2024, with rival EY quietly laying off dozens of staff in January. PwC also announced 600 job cuts towards the end of last year, while KPMG axed roles and froze pay for about 12,000 employees.
Notably, a number of businesses have reduced their workforce in recent times anticipating a likely economic slowdown later in the year.