Deloitte responds to downturn in consulting business with 1,200 job cuts in the US

The company is responding to a decline in its consulting business, which has created ambivalence between current and potential staff members, Bloomberg informed of.

“Our US businesses continue to experience strong client demand,” Deloitte managing director Jonathan Gandal said by email. He declined to say where the growth is slowing down. Deloitte’s US workforce grew 25% last year to more than 86,000, according to a company report.

Deloitte’s reduction in its workforce is not as severe as some of its competitors in the professional services industry. KPMG announced in February that it would cut less than 2% of its workforce in the US, while Accenture is cutting 2.5% of its total workforce, and Ernst & Young is cutting its workforce in the US. eliminating 5% from

Additionally, McKinsey & Company plans to reduce the workforce by approximately 2,000 jobs, the largest reduction in staff to date.

Some of these professional services firms, which provide guidance to clients on layoffs, have also put a halt to their hiring spree that has been going on for several years.

Some are even postponing start dates for new hires. EY, also known as Ernst & Young, intends to employ significantly fewer people this year than originally planned, and faces the consequences of its canceled plan to split into separate units. doing.

According to Tom Rodenhauser, managing partner at Kennedy Research Reports, the sharp deterioration in the recruiting environment has deterred some recent graduates who aspired to careers in consulting.

“They’re now saying, ‘Do I want to go this way too?’ He said.

The Financial Times had earlier reported on the cuts.