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Deloitte has reportedly told its UK employees that it will promote fewer people, reduce the average pay rise and cut bonuses in its consulting arm, The Financial Times has reported.
According to a memo sent to employees, and seen by the FT, it comes as full-year profits were “below our original plan” though “slightly ahead of last year”.
In light of this, employees in Deloitte’s consulting arm will reportedly see bonuses reduced on average by 20%, with partners’ pay levels also affected.
The firm’s deals business and its tax and legal arm performed above profit expectations however, and will be in line for full bonuses.
The memo, written by senior partner Richard Houston, said the consulting business “faced a particularly challenging year and fell materially short of its performance goals”, while its audit practice also performed below expectations.
Houston wrote: “At the start of FY25, we expected greater economic stability and a gradual return of growth opportunities. But an early election, geopolitical complexity and unexpected economic headwinds — like changes in trade policies — have continued to cause market uncertainty.”
The memo also said that Deloitte will increase UK employees’ salaries by 2.9% next year, against the 5% pay rise the previous year, reflecting a “need for caution given the current market outlook”.
The firm will also promote less people with around 5,500 promotions compared to the 6,800 promotions last year, and 7,000 the year before that.
A spokesperson told Accountancy Today: “Amid ongoing market uncertainty, we are pleased to be able to recognise our people for their hard work with salary increases, bonuses and promotions this year. This is alongside other benefits such as fully funded private medical insurance, recently enhanced family policies, and our commitment to offering flexibility and choice in our ways of working.”
