Deloitte UK has laid off 250 employees, the third time in 13 months that the Big Four have made redundancies. This move is believed to be aimed at employees in the advisory division of Deloitte who are underperforming.
Sources said that the reductions were part of “performance management”, and those affected “received adequate payments for notice”.
Deloitte warned last September that it planned to lay off 800 employees due to a decline in demand following the significant growth experienced during the pandemic.
The Big Four accounting firms, including EY, KPMG, and PwC have all hired aggressively in the wake of the Covid-19 pandemic due to the sharp increase in demand and deals. They are now trying to reduce costs, as the market is facing more difficult conditions.
EY cut around 300 jobs last summer. PwC also launched a round this summer. KPMG, on the other hand, axed over 200 roles last year and frozen pay for 12,000 out of 17,000 UK employees.
Deloitte announced its latest layoffs less than one month after announcing that, for the fourth consecutive year, its 749 UK equity partner earned in excess of £1 million. Deloitte’s average was down by 5% compared to the previous year. However, the number of partners has increased from 714 in 2011 to 749 today. The accounting firm is the only one of the Big Four that has reported an average payout of more than £1 million in the last two years.
As part of the global reorganisation of the company, the UK operations are also being overhauled. The accountancy firm will reduce the number of main business units from five to four. The new units are audit and assurance, strategy, risk and transaction; technology and transform; and tax and law.
Deloitte has declined to comment.
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