Prior to an expected market slowdown, Deloitte has initiated the largest reorganization of its global operations in ten years, according to a Financial Times report. The goal of this move is to cut costs and simplify the entity.
This restructuring plan calls for the elimination of four of Deloitte’s five primary business units, which the company has had since 2014: strategy, risk and transactions; technology and transformation; tax and legal; and audit and assurance. Reorganizing will cut costs across the board for the company, according to someone familiar with the plan, though a savings estimate has not yet been provided. Job cuts may or may not be a part of the restructuring. Financial Times was told by a former partner that this was not about junior high school. Couples will experience the greatest impact. Management positions will no longer be held by partners.
Joe Ucuzoglu, global chief executive of Deloitte, is leading the restructuring process, which will take a year to execute throughout the more than 150 nations in which the company conducts business. Ucuzoglu said the plan would lessen the firm’s “complexity” and “free up” more of them to work with clients instead of managing staff internally in an email sent to Deloitte’s partners on Monday. Globally, Deloitte employs roughly 455,000 people.
As the largest of the Big Four, Deloitte climbed to the top with its latest financial year’s global revenues of $65 billion, up 15%. But with challenging economic conditions in important markets, the company is ready for a more challenging year ahead. The Big Four have contributed to a report indicating that this year will mark the first time since 2020 that the UK consulting market will not expand.
Ucuzoglu rejected the idea of splitting its audit and consulting businesses the prior year, which led to the decision to restructure the company. Though it ultimately decided to give up on the endeavor in April of last year, EY had already attempted to orchestrate a break-up of the company.
Deloitte’s advisory businesses, which include its tax and legal unit and offer advice to companies on a range of topics, will be divided into three divisions from four as part of the changes. According to the FT report, its audit and assurance division will continue to operate independently.
According to the email sent to partners, the new structure should be in place by June 2025, and member firms can begin implementing it as early as June, according to the FT report.
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