Deloitte will carry out a large-scale reorganization – Kommersant
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Today, March 18, Deloitte CEO Joe Ukuzoglu announced a major restructuring. Writes about this Financial Times, referring to an email that Mr. Ukuzoglu sent to the company’s partners. Among other things, the reorganization involves reducing the number of divisions from five to four and simplifying the company structure.
As the FT writes, citing sources at Deloitte, the restructuring, which will be the largest in a decade, should reduce the company’s expenses; it is not yet clear what amounts may be discussed. Auditing and consulting companies expect a slowdown in the growth of financial indicators in the difficult economic situation in the coming year. According to sources, the restructuring has sparked intense discussions within Deloitte. From Mr. Ukuzoglu’s letter it follows that the restructuring should be completed by June 2025.
Last year, Deloitte abandoned plans to split into a consulting and auditing company. The Big Four, which in addition to EY include Deloitte, KPMG and PwC, are often criticized for the fact that their income from both auditing and consulting activities leads to conflicts of interest and insufficient quality work. Such criticism intensified after several scandals, including those related to the bankruptcy of a tour operator Thomas Cook and a German fintech company Wirecard. Back in 2020, the British regulator demanded to separate out the auditing business from the Big Four. After this, some of these companies began to consider this possibility. EY even announced a split into two parts in 2022, but in the end refused from this.
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