Deloitte to reorganise business in a bid to cut costs

Deloitte is reportedly set for the biggest reorganisation of its global operations in a decade as it seeks to cut costs and reduce the company’s complexity in the face of an expected market slowdown, according to the Financial Times.

The new structure will see the Big Four cut its business units from five to four, namely, audit and assurance; strategy, risk, and transactions; technology and transformation; and tax and legal.

One person familiar with the new plan stated that the reorganisation will reduce costs across the firm, however an estimated figure hasn’t been provided.

Joe Ucuzoglu, Deloitte’s global chief executive is at the helm of this reorganisation that is expected to take a year to implement across more than 150 countries.

In an email sent to Deloitte’s partners on Monday, Ucuzoglu said the plan would reduce the firm’s “complexity” and “free up” more of them to work with clients rather than manage staff internally.

The news comes after Ucuzoglu rejected the possibility of separating its audit and consulting businesses last year and publicly dismissed the logic of doing so.

Additional changes include, Deloitte’s advisory businesses will be cut from four divisions to three, its audit and assurance arm will remain as a standalone unit, and its consulting, financial advisory and risk advisory divisions will be brought into two newly created business units: strategy, risk and transactions; and technology and transformation.

The former will house Deloitte’s advisory services for mergers and acquisitions, which have been struggling due to a lack of deals. According to the email to partners, a copy of which was seen by the Financial Times, the technology and transformation section will combine its “digital transformation” capabilities, including engineering, artificial intelligence, data, and cybersecurity.

The Financial Times stated that Deloitte declined to comment on whether the rearrangement will involve job cuts but it is thought it would likely affect those at partner level rather than junior positions.

It is also thought some employees will be moved to an expanded audit and assurance arm, which will include those working on environmental, social, and governance issues, in an effort to break down organisational silos.

Additionally, in an attempt to capitalise on the decision to maintain the separation of its audit and consulting businesses, Deloitte’s tax and legal division will continue to operate independently under the new arrangement.

The reorganisation is thought to have been concluded by June 2025, with member firms starting to implement it as soon as this June.