Key Points:
- Deloitte launches its largest global restructuring effort in a decade to cut costs and streamline operations across the firm’s global network.
- The restructuring involves consolidating Deloitte’s five business units into four streamlined divisions.
- The move is driven by the desire to reduce complexity within the organization and enable partners to focus more on client-facing activities.
- The consulting sector faces challenges from an uncertain economic context and ongoing fallout, prompting firms to reassess governance frameworks.
In response to market challenges and a desire to streamline operations, Deloitte has embarked on its largest global restructuring effort in a decade. The initiative, spearheaded by CEO Joe Ucuzoglu, aims to trim costs and enhance efficiency across the firm’s extensive global footprint.
Deloitte is the largest of the big four consulting firms, with approximately 455,000 employees worldwide and revenues reaching US$65 billion ($99 billion) in FY2023—a 15% increase. However, faced with an uncertain economic landscape and ongoing fallout from past scandals, the firm is taking proactive steps to adapt to changing market conditions.
Over the next 12 months, Deloitte plans to implement the restructuring across more than 150 operating countries. A central aspect of the initiative involves consolidating the firm’s five key business units into four streamlined divisions: audit and assurance, strategy, risk and transactions, technology and transformation, and tax and legal.
In an internal email obtained by the Financial Times, CEO Ucuzoglu outlined the objectives of the restructuring plan. He emphasized the need to reduce complexity within the organization, allowing partners to focus more on client-facing work rather than internal management duties.
The consulting sector anticipates a challenging year ahead as economic uncertainties persist, dampening corporate spending. Furthermore, the big four consulting firms, including Deloitte, continue to grapple with the repercussions of past scandals, prompting a reassessment of governance frameworks.
Despite the industry’s headwinds, Deloitte’s restructuring efforts signal a proactive approach to adapting to market dynamics. The firm aims to remain agile and resilient in navigating the evolving business landscape by streamlining its operations and enhancing efficiency.
