Deloitte has embarked on its most significant global restructuring effort in a decade, as reported by the Financial Times. The move aims to streamline operations and curtail expenses amidst projected market deceleration. The restructuring entails consolidating Deloitte’s primary business units into four categories: audit and assurance; strategy, risk, and transactions; technology and transformation; and tax and legal. This marks a shift from the previous five-unit structure in place since 2014.

Global Chief Executive Joe Ucuzoglu, in an email to partners, emphasized the plan’s objective to optimize workforce deployment, enabling more employees to engage directly with clients rather than focusing on internal management. Deloitte, with approximately 455,000 employees worldwide, anticipates this restructuring to enhance client service delivery efficiency.

Despite Deloitte’s robust financial performance, with global revenues reaching $65 billion in the previous fiscal year, challenges loom in specific markets. Notably, the UK consulting sector is projected to witness stagnation for the first time since 2020, attributed to prevailing economic complexities.

This strategic overhaul follows a deliberate decision by Ucuzoglu to diverge from rival EY’s approach of segregating consulting and audit functions. Deloitte aims to fortify its market positioning and adapt to evolving industry dynamics through a unified operational framework.

The restructuring timeline indicates that the new organizational structure will be operational by June 2025, with member firms commencing implementation as early as June. This proactive approach underscores Deloitte’s commitment to swiftly aligning its operations with strategic imperatives and market exigencies.

By : Kruthiga V S

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