deloitte laid off
deloitte lay off
deloitte lay offs
deloitte layoffs san francisco
deloitte severance package
deloitte starting salary low
This downturn impacts all levels; nationwide maybe the number is about 800 people. The cut was made based on performance ratings, skill sets and ability to deploy.
The reason of course is that the projected business does not support the existing headcount. In reality, we have been long on head count for a number of months, but had hoped that we could work out way out through revenue growth and expense reductions. All the low-hanging fruit was cut long-ago, and frankly there is no revenue growth for audit work. This will be a tough year.
(fm note: I heard from another source last week that Deloitte audit is projected to have less than 2% growth this year. So much for all the hoopla about record years and high payouts for partners based on last year. That’s what you get when you have non-GAAP, partnership style accounting. )
The people that are impacted will be notified over the next week, starting on Monday. I don’t have info on the various packages that will be offered, but in my experience the firm has been humane. Counseling and out-placement services will be offered.
The real question of course is the partner headcount. This is the time of year that the newly promoted partners begin. I think we have about 70 new ones starting. Some partners retired at the end of the FY, which is May 31. In any event, I’m very sure that we have too many partners in the audit function, so the real fun has not yet begun. The last time there was a partner bloodbath was in 1990, right after the merger. If the revenue line does not grow, partners will be executed in due time.
The rest of the firm (tax and consulting) seems to be very healthy. As you know, we have a single profit pool in the US, so if the audit practice continues to drag, the other groups will force the issue of audit partner terminations.
I’ve heard the other Firms have similar issues. In the marketplace, we have seen desperation in terms of pricing for new work. I believe that PwC even offered to do an audit for free (they were the incumbent auditor). So right now, the market is very very Darwinian…