Deloitte UK Readies Job Cuts, Raises Partner Salaries by 4%

Company Overview - Deloitte LLP is planning to cut jobs in its UK business due to a sector-wide slowdown in consulting services [1] - The company is reviewing its internal services teams, with potential job eliminations in marketing and business development roles [1] Financial Performance - Deloitte's revenue for its tech consulting business decreased by 10% to £1.67 billion in 2025, attributed to clients reducing spending [6] - Overall revenue fell by 1% to £5.68 billion, down from £5.75 billion the previous year [6] - The audit and assurance business grew by 3% to £969 million, while the tax and legal unit increased by 7% to £1.34 billion [6] - The strategy, risk, and transactions business also saw a 3% increase to £901 million [6] Compensation and Employment Changes - Deloitte partners in the UK and Switzerland received an average pay raise of 4% for the financial year ending May 31, with pay rising to approximately £1.05 million from £1.01 million [2] - In contrast, rival PricewaterhouseCoopers maintained its UK partners' pay at an average of £865,000 [2] Industry Context - The consulting industry is facing a decline in demand for traditional services, exacerbated by a decrease in mergers and acquisitions and government spending cuts in the US [3] - Other firms in the industry, such as Accenture Plc and McKinsey & Co., have also reduced headcounts in response to the challenging market conditions [3] Strategic Response - Deloitte may eliminate some roles but is also considering creating new positions and relocating at-risk staff where feasible [4] - The firm underwent a major reorganization in 2024, reducing its business units from five to four [4] - Deloitte's UK senior partner noted that geopolitical and economic challenges have led clients to delay investments [4][5] - The company aims to continue transforming its operations through technology adoption and enhanced collaboration with other Deloitte member firms [5]