Layoffs Intensify: Deloitte UK Likely To Cut 180 Jobs After Laying Off 900 Employees Amid Restructuring

The UK-based consulting giant Deloitte is set to lay off around 180 employees from its UK advisory divisions as part of a broader restructuring plan, according to a report by the Financial Times. This latest move highlights the ongoing challenges faced by the consulting industry in a sluggish economic environment.

The layoffs will impact staff in the strategy, risk and transactions division, as well as the technology and transformation division. Employees affected by this restructuring were recently informed that their roles were at risk.

Previous Layoffs

This isn't the first wave of job cuts at Deloitte. In September 2023, the firm announced 800 layoffs, followed by an additional 100 job cuts in February 2024. The consulting sector, once buoyed by a pandemic-era boom in technological transformation projects, is now grappling with a stagnating market.

Deloitte UK Senior Partner and Chief Executive Richard Houston hinted at the company's need for cost management earlier this year, stating, "Like many businesses, we had to carefully consider our cost base and make some difficult choices."

In addition to the sluggish consulting market, the firm's advisory work for the financial services sector has been impacted by the slow pace of mergers and acquisitions, further straining its operations.

Financial Performance in FY24

Deloitte UK's financial results for the year ending May 31, 2024, reflect mixed outcomes. Revenue grew by 2.4% to €5.7 billion (£5.7 billion), but distributable operating profit remained flat at €756 million. Meanwhile, the average profit per equity partner dropped by 5% to €1.012 million.

Despite these challenges, the firm acknowledged its workforce's efforts, with Houston highlighting sustained promotion levels and enhancements to rewards and benefits, including a 5% increase in average pay and bonuses.

"This is a strong set of results in a challenging market, against a difficult economic and geopolitical backdrop," Houston stated.

Broader Industry Implications

The layoffs at Deloitte reflect broader difficulties in the consulting industry as firms recalibrate their strategies in response to reduced demand for advisory services. The consulting sector's reliance on thriving markets for technology transformation and financial services means any slowdown in these areas has a ripple effect on operations and workforce needs.

*Inputs from ETNow*