Deloitte Reduces Partners Amid Consulting Slowdown

Deloitte is adjusting its strategy to navigate a softer consulting market, cutting around 5% of its partners - about 55 positions - alongside additional staff reductions. The move aims to streamline operations and respond to market conditions but highlights the challenges facing professional services firms in a shifting economy.

The firm, which had 1021 partners according to its 2024 annual report, has reduced that number to approximately 900 over the past year. Deloitte operates with a mix of equity partners, who hold a stake in the company, and non-equity partners. The latest cuts primarily impact its consulting division, though the firm did not disclose exact figures.

Deloitte's decision comes as part of a broader restructuring effort. The firm saw a 2.4% drop in revenue for FY24, bringing its total to $2.78 billion. Consulting was hit the hardest, with revenue declining 4% to $1.31 billion. This follows a period of consulting expansion during the pandemic, which has since slowed amid economic shifts and reduced client spending.

The move is one of the first major changes under the new CEO, who took over leadership in February. Deloitte is restructuring its operations while balancing short- and long-term client demands. The consulting industry remains under pressure, particularly in the wake of rival firms facing scrutiny, impacting market confidence.

Source: The Australian, Consultancy UK