Deloitte to cut 1200 jobs in the US due to a slowdown in consulting business

Deloitte has joined the long list of companies announcing layoffs. The company informed its staff on Friday that it will cut around 1,200 jobs in the US. Deloitte has become the latest among the Big Four financial consulting giants to announce layoffs owing to a slowdown on the consulting side of its business.

According to a report by the Financial Times the reductions amount to 1.5 percent of the US workforce.

The layoffs will impact areas such as the financial advisory business, which has been affected by a slump in merger and acquisition activity.

Employees discussing the matter in online forums mentioned that Deloitte's Risk and Financial Advisory division revealed the cuts in a call with staff on Thursday.

According to the Financial Times report cuts at RFA amount to 3 per cent.

“Our US businesses continue to experience strong client demand, as growth in select practices moderates, we are taking modest personnel actions where necessary.” a Deloitte spokesperson said, reported Financial Times.

KPMG announced in February that it was laying off close to 2 percent of its US workforce.

Earlier this week, EY announced that 3,000 employees in the US in the company would lose their jobs. EY announced its decision less than a week after scrapping a project to spin off its consulting business.

As clients clamoured for advice on how to transform their IT to deal with remote work and corporate M&A activity was booming, Deloitte and its rivals ramped up hiring after the pandemic.

According to Deloitte's annual transparency report, its US headcount increased from 65,000 in 2021 to 80,000 last year. The London-headquartered firm, reported an annual revenue of $59.3 billion in 2022. The consulting industry is still growing strongly in some areas, but is contracting in others.

According to Financial Times, among M&A advisers surveyed by William Blair this month, only one-third reported growth in demand quarter-over-quarter.