Deloitte is planning to lay off 180 more jobs across its UK advisory divisions, media reports said. This move from the tech company highlights the growing weakness in the British consulting industry.
A report by The Financial Times cited sources familiar with the decision and stated that the company informed the staff impacted by the move on Tuesday morning that their employment stood at risk due to restructuring.
The company said that the decision to let go of more people was necessary to navigate the ‘challenging market conditions’. The layoffs come after 800 job cuts announced earlier in September 2023 and 100 more informed this year in February.
The tech firm has been pushing out workers who it thinks are underperforming, including nearly 250 advisory employees let go in recently.
The recent job cuts will impact employees working in both the strategy, risk, and transactions division and the technology and transformation division, the report noted citing sources.
The job losses remained subject to consultation, the firm said. These layoffs collectively accounted for less than 1 per cent of the company’s overall workforce in the UK.
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Earlier in September, Richard Houston, Deloitte’s UK senior partner and chief executive, cautioned that the company had to ‘carefully consider our cost base and make some difficult choices this year’. The announcement came after the company said that its 749 UK equity partners took home over £1 million on average for a fourth consecutive year, in spite of a sharp slump in sales growth in the fiscal year that ended in May.
The UK consulting market has been tepid since the pandemic-era boom in technology transformation work ended and the slow pace of mergers and acquisitions activity has impacted advisory work for the financial services sector.
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