According to a report, Deloitte proposes a significant restructure to save costs. It will reduce from five to four business divisions

According to a Financial Times story, Deloitte has begun the largest reorganization of its international operations in ten years in an effort to cut costs and simplify the organization in front of a predicted market downturn.

The article also said that Deloitte’s primary business areas would be reduced from the five the company has had since 2014 to four under this reorganization plan: audit and assurance; strategy, risk, and transactions; technology and transformation; and tax and legal. A source with knowledge of the proposal claims that the reorganization will save money for the company as a whole, albeit a savings estimate has not yet been provided. Whether job cutbacks will be part of the restructure is uncertain. Financial Times was informed by a former partner that “this is not about the junior grades.” The impact will be greatest at the partner level. Partners will no longer have managerial roles.

Joe Ucuzoglu, worldwide chief executive of Deloitte, is leading the reorganization process, which will take a year to execute in the more than 150 nations in which the company does business. Ucuzoglu claimed the proposal would lessen the firm’s “complexity” and “free up” more of them to engage with customers instead of managing personnel internally in an email issued to Deloitte’s partners on Monday. Globally, Deloitte employs over 455,000 people.

In its most recent fiscal year, Deloitte’s worldwide sales climbed by 15% to $65 billion, making it the biggest of the Big Four. Nonetheless, given the challenging economic circumstances in important areas, the firm is prepared for a more challenging year ahead. For the first time since 2020, the UK consulting industry is expected to contract this year, according to a research that incorporates input from the Big Four.

After Ucuzoglu rejected the idea of splitting its audit and consultancy divisions the prior year, the company decided to reorganize. However, before deciding to give up on the plan in April of last year, EY had already attempted to orchestrate the firm’s dissolution.

Deloitte’s advisory operations, which include its tax and legal section and provide advice to corporations on a range of topics, will be divided into three divisions from four as part of the reforms. According to the FT article, its audit and assurance division would continue to operate independently.

According to the email sent to partners, the new structure should be in place by June 2025, and member businesses may begin implementing it as early as June, according to the FT article.