Deloitte US cuts 1,200 jobs

26 April 2023 Consulting.us 2 min. read
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Deloitte told staff on Thursday it is cutting approximately 1,200 jobs in the US, joining several other consultancies laying off employees amid declining service demand.

The cuts represent approximately 1.5% of Deloitte US’ workforce. Employees discussing the layoff announcement in the Deloitte forum on Reddit said the risk & financial advisory business will see a larger 3% reduction.

The RFA business has been affected by a decline in demand for M&A services amid a worsening economy and higher cost of capital.

One Redditor noted layoffs likely won’t affect audit and tax, meaning major cuts will fall on advisory and consulting.

“Our US businesses continue to experience strong client demand,” a Deloitte spokesperson told the Financial Times. “As growth in select practices moderates, we are taking modest personnel actions where necessary.”

Deloitte US cuts 1,200 jobs

Deloitte rapidly scaled up its workforce in the post-pandemic boom to meet high demand for IT modernization and M&A services. The Big Four accountancy grew from 65,000 people in 2021 to 80,000 last year.

KPMG was the first Big Four firm to announce cuts in its consulting division, laying off 700 people, or 2% of its US workforce in February. EY earlier this month announced the elimination of 3,000 jobs, or 5% of its US workforce. The news arrived less than a week after EY’s split plans were scrapped by the US firm approximately a year into the $600-million process.

PwC has yet to announce layoffs.

McKinsey, meanwhile, announced it was cutting 3% of its jobs, while Accenture announced a 2.5% cut.