Deloitte restructures globally to reduce complexity and costs
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Joe Ucuzoglu
Deloitte has initiated a major reorganisation of its global operations, the largest in over a decade, as the Big Four firm aims to reduce costs and complexity amid an anticipated market slowdown.
The restructuring will consolidate Deloitte’s main business units from five to four, comprising audit and assurance; strategy, risk and transactions; technology and transformation; and tax and legal. While cost savings are expected, no figures have been disclosed, and neither have potential job cuts.
According to a former partner, the reorganisation will primarily impact management positions held by partners rather than junior staff, the Financial Times reports.
Deloitte’s global chief executive, Joe Ucuzoglu, is spearheading the shake-up, which will take a year to implement across the firm’s 150+ countries. In an email to partners, he stated that the plan would reduce complexity and enable more partners to work directly with clients rather than managing staff internally.
After years of rapid growth, with global revenues increasing 15% to $65 billion (around £51.2bn) in the last financial year, Deloitte and its Big Four rivals are bracing for a tougher year as companies cut spending amidst economic challenges.
The move comes after Mr Ucuzoglu rejected separating Deloitte’s audit and consulting businesses last year, contrasting with EY’s abandoned attempt at a break-up. The reorganisation aims to eliminate silos, with some staff transferring to the expanded audit and assurance arm, including those working on environmental, social, and governance (ESG) matters.
Deloitte stated that the reorganisation would “modernise and simplify” its strategy, with the new structure expected to be in place by June 2025.
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