Deloitte cuts partners as consulting feels the squeeze
Deloitte’s new CEO Joanne Gorton has moved to cut partners and staff from its consulting arm amid a pullback in spending in the sector.
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Professional services giant Deloitte Australia has swung the axe on its partnership, with sources suggesting the firm has sacked as many as 5 per cent, or 55, of its partners.
Those partners and a number of other staff will go in the latest round of reductions to Deloitte’s consulting business, the sources said.
Deloitte has shrunk its partnership by almost 10 per cent over the past year. The firm reported 1021 partners in its 2024 annual report. Now there are about 900.
Deloitte has a nearly equal split of equity partners, who hold a stake in the partnership, and non-equity partners.
The business confirmed on Tuesday that cuts had been made to consulting arm late last week, but declined to reveal the size of the headcount reduction.
A spokeswoman said the firm regularly reviewed its business and made “adjustments in accordance with market demands and strategic priorities”.
“We have taken some actions across the business which have resulted in the retirement of some partners,” she said.
“Our primary goal is to best position our firm to respond to the short and long-term needs of our clients.”
The development is one of the first strategic moves by new chief executive Joanne Gorton, who previously ran the firm’s audit and assurance business.
Ms Gorton took the job in February, replacing veteran industry figure Adam Powick, who had run Deloitte since 2021.
Deloitte’s Australian operation has been under pressure in a sluggish market for the consulting sector following rival PwC’s tax leaks scandal and a pullback on consultant spending.
The firm reported a 2.4 per cent fall in revenue over the 2024 financial year of $2.78bn.
The consulting arm was the worst affected, with revenue down 4 per cent to $1.31bn.
Consultants like Deloitte had profited off the expansion of work over the Covid-19 period.
It kicked off a major restructure in March last year, slimming its operations from five operating units to four.
Do you know more? Contact rossd@theaustralian.com.au
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