Deloitte is embarking on its most significant restructuring in ten years, aiming to streamline its operations and cut costs in anticipation of a market slowdown. This reorganization will condense Deloitte’s business units from five to four: audit and assurance; strategy, risk, and transactions; technology and transformation; and tax and legal.
Although specific savings figures have not been disclosed, the overhaul is expected to reduce the firm’s expenses. While it’s unclear whether the reorganization will result in job losses, impacts are anticipated mainly at the partner level, particularly those in management positions.
Joe Ucuzoglu, Deloitte’s global CEO, is leading the reorganization, which aims to lessen the company’s complexity and allow more partners to focus on client work rather than internal management. This move is part of a broader effort to adapt to a challenging economic environment, which is causing companies to cut back on spending and is expected to halt growth in the UK consulting market for the first time since 2020.
This restructuring follows Ucuzoglu’s decision last year not to separate Deloitte’s audit and consulting services, a stance that differentiates Deloitte from some of its rivals, like EY, which considered but ultimately abandoned such a split.
Deloitte’s reorganization will also see its advisory services consolidated into fewer divisions, with an emphasis on integrating services such as digital transformation, artificial intelligence, and cyber services. The firm is also aiming to maintain its integrated tax and legal services as a key differentiator in the market.
The reorganization is set to be implemented across Deloitte’s global operations in over 150 countries and is expected to be completed by June 2025. Deloitte’s strategy with this restructuring is to modernize and simplify its operations, strengthening its position in a competitive market.
