A report by Financial Times revealed that Deloitte will cut about 1,200 jobs in the US or 1.5 per cent of its US workforce.
The cuts will be seen in roles that come under advisory business as they have been impacted by a decline in mergers and acquisitions (M&A) activity due to the current tough economic conditions.
Earlier this month, the auditing firm’s rival EY had also announced its layoff plans. EY is looking to cut 5 per cent of its workforce after its plan to separate the company’s audit and consulting units fell through.
“Our US businesses continue to experience strong client demand. As growth in select practices moderates, we are taking modest personnel actions where necessary,” Deloitte told Reuters.
Jobs cuts at Deloitte mean that two of the ‘Big 4’ auditing firms have now undertaken measures to decrease headcount. It will be interesting to see how KPMG and PricewaterhouseCoopers (PwC) approach the current situation.
