Deloitte has announced a new series of measures and pay cuts to help preserve cash in light of the ongoing pandemic.
In order to “focus on business resilience and the long term impact of the current crisis”, the accountancy giant announced that there will be no annual salary increases this year.
While the group will continue to pay bonuses and promote its employees, it said that the number of both will be reduced and deferred to later in the year.
As part of this package of actions, partner annual earnings are also expected to decline by around 20%, and the group has also deferred profit distributions.
News of these cutbacks were revealed in a blog post by Richard Houston, senior partner and chief executive at Deloitte.
In the post, Houston said that the actions in question have “not been taken lightly”, but they are the “right thing to do so that we can protect jobs and our business for the foreseeable future”.
He said that the measures align with Deloitte’s commitment that “the highest earners in our firm – our partners – should shoulder the greatest proportion of the financial burden”.
In addition to the actions announced, Houston added that every employee, at all grades, will be given the option to temporarily reduce their working hours whilst “maintaining a higher proportion of their salary”.
He said: “This is a completely voluntary initiative and while it will of course provide some financial benefit to our firm, I also hope that it will provide even greater flexibility and support to those who are, understandably, struggling with balancing work and caring responsibilities.”
Deloitte also said that it has moved more than 20,000 of its employees to remote working in light of the virus, ensuring that they are “able to continue to support our clients and can still work on critical national projects such as supporting the NHS, helping clients adapt supply chains or increase digital capability, and supporting charities to access vital funds.”