Big Four Partner Exodus Reshapes Consulting Sector

Australia’s leading consulting firms are reducing partner numbers to preserve profits as demand for advisory services slows, a move that could weaken firm capabilities and drive talent into other industries.

The combined number of partners at Deloitte, EY, KPMG and PwC has fallen by 15% over two years, bringing the total to approximately 2900. This represents a loss of 500 partner roles nationwide and highlights ongoing pressures that are reshaping the traditional consulting model.

The Big Four built their standing through strong advisory expertise, but they are now facing the impact of economic shifts and internal challenges. PwC has lost over 300 partners following its sale of the public sector consulting division and the fallout from the tax leaks scandal. Deloitte has seen over 200 partners exit, KPMG around 170 and EY more than 100. Fewer than half of those who left the firms have been replaced.

This trend reflects more than reduced operational costs. It points to leaner teams, lower revenue and slower profit growth. However, with fewer partners sharing profits, individual earnings may remain stable. In the last financial year, average partner pay ranged from $500,000 to $800,000.

Across the broader business environment, the consulting downturn is opening opportunities for former partners to take on executive roles in other sectors. Recruitment firms report that experienced consultants are increasingly looking to join company leadership teams in both public and private organisations. The market continues to focus on cost control, though there is growing interest in strategic and operational leadership talent.

One area showing potential is renewable energy consulting. New partner appointments, including those at PwC, suggest confidence in the transition to green energy. Targeted recruitment and internal promotions indicate that while firms are reducing their overall partner base, they remain committed to building expertise in emerging sectors. Whether these investments yield results will become clearer over time.

Source: Australian Financial Review, Business Insider