Deloitte has commenced the most extensive reorganisation of its global operations in a decade, driven by the need to cut down on expenses and simplify organizational structure amidst projections of a market downturn.
Deloitte’s main business units will be cut to four — audit and assurance; strategy, risk, and transactions; technology and transformation; and tax and legal — from the five the firm has had since 2014, according to nairametrics.
The reorganization will reduce costs across the firm, said one person familiar with the plan, but added that a figure had not yet been put on the savings, according to a Financial Times report.
The restructuring, which will take a year to put into practice across the firm’s 150 markets worldwide, is being led by Deloitte Global Executive Director Joe Ucuzoglu.
In an email sent to Deloitte’s partners on Monday, Ucuzoglu said the plan would reduce the firm’s “complexity” and “free up” more of them to work with clients rather than manage staff internally. Around 455,000 people work for Deloitte worldwide.
In its last financial year, Deloitte recorded a 15% increase in global revenues to $65 billion, making it the largest of the Big Four.
However, Deloitte, EY, PwC, and KPMG are expecting a more challenging 12 months due to the difficult economic environment in key markets which is forcing companies to cut their spending after several years of rapid growth, according to Financial Times.
The UK consulting market will fail to grow this year for the first time since 2020, according to a new report, which includes input from the Big Four.
While some others in the market are looking to break this function apart,” Ucuzoglu wrote to partners, “we believe that our fully integrated suite of tax and legal capabilities is a significant source of strength and differentiation and aligns with the needs of our clients.”
Ucuzoglu wrote to partners, “We believe that our fully integrated suite of tax and legal capabilities is a significant source of strength and differentiation and aligns with the needs of our clients.”
The new structure is projected to be in place by June 2025, with its partners starting to implement it as soon as June, according to the email to partners.
