Deloitte revamps structure to cut costs in tough market

Deloitte is looking to overhaul its structure as the professional services firm looks to cut costs ahead of a market slowdown, according to the Financial Times.

The move will see the firm reorganize its main business units down to four arms from five, the paper said, citing a person familiar with the matter. They are audit and assurance; strategy, risk and transactions; technology and transformation; and tax and legal.

A spokesperson for Deloitte said the firm had recently completed a process “to modernize and simplify” Deloitte’s strategy.

“We recently completed a thoughtful process to modernize and simplify Deloitte’s storefront and go-to market strategy,” said a Deloitte Global spokesperson. “We are confident this will further enhance the exceptional quality and value we deliver to our clients and communities, as well as the vibrant career paths we provide our people.” 

The Big Four accounting firms — Deloitte, PwC, EY and KPMG — have already started to cut back in some areas amid falling client demand. The pandemic supercharged demand for their consulting arms in particular, as corporations scrambled for guidance on issues like remote working and supply chain disruption. 

But that business is starting to slow as global economic uncertainty pushes companies and government departments to pull back. That’s hit hiring and pay at the accounting firms.