Deloitte's global rebound is shadowed by its first revenue decline in 15 years in the UK

Core Insights - Deloitte UK's annual revenue has declined for the first time in 15 years, reporting £5.68 billion ($7.6 billion) for the year ending May 31, 2025, which is a 1% decrease from the previous year [1][6] - The growth rate for Deloitte UK has significantly slowed, dropping from 14% to 2.4% in the 2024 financial year, marking the first revenue decline since the Great Recession of 2009 and 2010 [2][6] Financial Performance - The consulting division of Deloitte UK experienced a contraction of 10%, with revenue falling to £1.67 billion ($1.9 billion), attributed to clients delaying investments in large-scale change programs [3] - Despite the revenue decline, profits increased by 4% in the 2025 financial year, with average profit per equity partner rising to £1.05 million ($1.3 million) [4] - UK partners have consistently earned over £1 million for five consecutive years, representing the highest partner returns among the Big Four firms [4] Operational Adjustments - In response to the slowdown, Deloitte UK has implemented cost-cutting measures, including a reduction in staff travel and expenses by over 50% [4] - The firm has reduced promotions by 1,300 and appointed 20 fewer partners compared to the previous year, alongside a decrease in hiring from 6,800 to 3,160 new colleagues [3][4] - Deloitte converted 77 individuals from salaried to equity partners, nearly tripling the number from the previous year, indicating confidence in future growth opportunities [5] Global Context - Deloitte is the largest of the Big Four firms in terms of revenue and employees, with its UK branch contributing approximately 10% of the global revenue in the 2024 financial year [5]