Deloitte, one of the Big Four accounting firms, is reportedly planning to cut approximately 1,200 jobs, which accounts for about 1.5% of its U.S. workforce, according to internal employee communications cited by the Financial Times. The majority of the layoffs are expected to occur in areas such as the financial advisory business, which has been adversely impacted by a slowdown in merger and acquisition activity.
This news comes shortly after Deloitte’s competitor, Ernst & Young, announced its own plans to reduce its U.S. workforce by 5%, following the unit’s objection that derailed the global accounting giant’s proposal to split its audit and consulting units.
Deloitte has stated that its U.S. businesses are still experiencing strong client demand, but acknowledges that growth in certain practices has moderated, prompting the need for “modest personnel actions where necessary,” as mentioned in an emailed statement to Reuters.
The financial industry as a whole has seen a wave of job cuts in recent months, with major Wall Street banks, asset managers, and fintech companies all making workforce reductions. This trend can be attributed to the challenging macroeconomic environment, which has impacted consumer sentiment and dampened demand in various core business segments.
As part of the Big Four accounting firms, which also include EY, KPMG, and PricewaterhouseCoopers, Deloitte’s job cuts are indicative of the broader challenges facing the accounting and financial services industry in the current economic climate.