Deloitte to cut 1,200 jobs in US, report says

Terminations will be focused on consultancy's financial advisory business

New York-headquartered Deloitte US has more than 80,000 employees. Reuters

Global consultancy Deloitte is planning to lay off about 1.5 per cent of its workforce in the US, or about 1,200 people, amid growing fears of a slowdown in the world’s biggest economy.

The terminations will be focused on areas such as the financial advisory business, which has been affected by a drop in merger and acquisition activity, The Financial Times reported on Friday.

The reductions in Deloitte’s risk and financial advisory business will amount to 3 per cent of the division's staffing, it added.

“Our US businesses continue to experience strong client demand,” the FT quoted a Deloitte representative as saying.

“As growth in select practices moderates, we are taking modest personnel actions where necessary.”

New York-headquartered Deloitte US has more than 80,000 professionals, up from 65,000 in 2021.

The consultancy did not immediately respond to The National’s request for comments.

After boosting hiring activity during the digital boom at the height of the Covid-19 pandemic, consultancies such as Deloitte, Ernst & Young and KPMG have been laying off workers amid declining demand for their services and growing fears of a recession in the US.

They went on a hiring spree after the pandemic accelerated digital transformation efforts and hybrid work cultures across industries, which in turn fuelled demand for their services.

This week, EY’s US arm reportedly said it was firing 5 per cent of its workforce, almost 3,000 of the company's US employees.

In February, KPMG revealed plans to lay off nearly 2 per cent of its US staff in advisory roles.

Last month, IT consultancy Accenture also announced plans to cut 19,000 jobs, or about 2.5 per cent of its global workforce, as it also lowered its profit forecast over worries of a global economic slowdown.

Management consultancy McKinsey is planning to cut 2,000 jobs, Bloomberg reported in February.