Deloitte Australia Announces Global Restructure to Address Economic Challenges

Deloitte Australia‘s chief executive, Adam Powick, has revealed a major global restructure aimed at streamlining operations and enhancing responsiveness to client needs amidst challenging economic conditions. The restructure, which has been in the works for a year, will see Deloitte shift from five to four operating units.

As part of the transformation, two new units, strategy, risk & transactions and technology & transformation, will be established to work alongside the existing audit & assurance and tax & legal units. The existing consulting, risk advisory, and financial advisory units will mostly merge into the two new divisions.

According to Mr. Powick, the restructure is the culmination of extensive global efforts over the past 12 months to align services with client priorities, simplify the offering model, and eliminate duplicated roles that have accumulated over time.

The restructure is not aimed at job cuts but at optimizing the firm’s ability to provide integrated solutions to clients. Deloitte, like its competitors, has been adjusting its workforce due to a tightening consulting market, with revenue growth expected to be modest globally and flat in Australia.

The local consulting market remains challenging, with Deloitte Australia projected to report flat revenue growth for the year, influenced by multiple factors including reduced public sector demand following the PwC tax leaks scandal and a subdued mergers and acquisitions landscape.

To position the firm for future market leadership, Deloitte Global’s Ucuzoglu announced the restructure to partners, emphasizing the need for a more streamlined organization that reflects client needs. The changes will enhance partner focus on the marketplace and drive growth for the firm.

Deloitte Australia, with its 14,000-strong workforce and $2.85 billion revenue in the last fiscal year, is set to become the largest big four consulting firm locally, buoyed by the decline in revenue at its once-leading rival, PwC Australia. Globally, Deloitte recorded $64.9 billion in revenue in FY2023, solidifying its position as the largest of the big four.