Deloitte to slash bonuses and scale back hiring as profits slump
The accountancy giant unveiled the cost-cutting plan in an email to UK staff on Tuesday, as bosses said they were responding to an underwhelming performance across its audit and consulting business.
Richard Houston, senior partner at Deloitte's UK business, told staff that the firm's consulting arm had 'faced a particularly challenging year', which led to a 'worse-than-expected' performance.
Staff in Deloitte's consulting business will see their bonuses cut by 20pc after the unit 'fell materially short of its performance goals,' Mr Houston's email said.
He also confirmed that Deloitte will limit promotions to 5,500 this year, with the firm having previously handed out 6,800 promotions in 2024 and 7,000 the year prior.
Deloitte's partners, who took away payouts worth more than £1m in 2024, will also see their pay affected.
Mr Houston said: 'At the start of FY25, we expected greater economic stability and a gradual return of growth opportunities. But an early election, geopolitical complexity and unexpected economic headwinds – like changes in trade policies – have continued to cause market uncertainty.'
In addition to slashing its consultants' bonuses, Deloitte's cost-saving measures will see the firm limit pay rises for all UK employees to 2.9pc in 2025, compared to the 5pc increases handed out last year.
Mr Houston added that Deloitte's UK firm will be overhauling its bonus structure to pay out higher bonuses to employees in more profitable segments 'to reflect the variations in performance across our businesses'.
Meanwhile, employees in Deloitte's tax and legal business will be paid full bonuses after a better-than-expected financial performance.
The cuts come as other 'big four' accountancy firms have struggled to navigate a recent slump in activity post-Covid, which has led to layoffs across the industry.
A Deloitte spokesman said: 'Amid ongoing market uncertainty, we are pleased to be able recognise our people for their hard work with salary increases, bonuses and promotions this year.
'This is alongside other benefits such as fully funded private medical insurance, recently enhanced family policies, and our commitment to offering flexibility and choice in our ways of working.'
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Los Angeles Times
36 minutes ago
- Los Angeles Times
Struggling Texas cotton industry emphasizing the hazards of fast fashion
LUBBOCK, Texas — For decades, the cotton industry has long been considered king in the Texas agriculture world. However, a shift has left it standing on shaky ground. In the last few years — as cotton producers struggled with low market prices, high costs of business, and unpredictable weather — synthetic fibers have become more mainstream. Fast fashion outlets on the internet are offering clothes made of polyester, nylon and spandex at hard-to-beat prices. And for customers dealing with inflation and the rise of influencer culture, the clothes are flying off the virtual shelves. 'We've been growing this safe fiber all our lives, and we can't seem to get any traction,' said Walt Hagood, a cotton producer outside Lubbock. 'If people want cotton, it would be really helpful for them to go out and start asking the stores for it.' The cotton industry isn't going down without a fight, though. Producers in the Texas High Plains, where 30% of the nation's cotton is grown, have started raising awareness about synthetic fibers and what impacts the non-biodegradable products have on the environment and consumer health. In recent months, Plains Cotton Growers, an organization that represents cotton producers in the region, has shared infographics about synthetic fibers. Almost 70% of clothes in fast fashion are made with synthetics, mostly polyester, which is usually made from petroleum. Plastic-based fibers are not biodegradable. Microplastics, which shed when the clothes are made, washed, and worn, are affecting more than the cotton industry. These tiny plastic particles build up in water supply sources, contaminating drinking water and polluting lakes and rivers. This is also a cause of concern for farmers, who depend on good water quality to prop up their crops. As the competition for consumers grows, cotton farmers are hoping to gain a powerful ally in their mission against fast fashion: U.S. Health Secretary Robert F. Kennedy Jr. He has already shown interest in regulating warning labels for foods containing synthetic dyes and other additives. They hope he can take a closer look at the impact the man-made fibers have on the environment and consumer health. Kara Bishop, director of communications and public affairs for Plains Cotton Growers, has been behind much of the messaging on social media. Following the COVID-19 pandemic, Bishop saw the rise in athleisure wear and 'shopping hauls' featuring TikTok influencers showing off clothes from known fast-fashion outlets. Even when she would shop, Bishop said it was hard to find clothes that were 100% cotton that were also fashionable. Once she saw that synthetic manufacturers were able to replicate crochet tops or denim vests and blazers without cotton, Bishop knew there was a problem. She realized there wasn't enough awareness for consumers about cotton, or the harm caused by polyester and other synthetic fibers. 'We've got to do something to slow down the momentum of plastic pollution,' Bishop said. 'But there's got to be some kind of emotional anchor. You can't just tell people to wear cotton.' Bishop said this is why she started highlighting the health risks on social media. Some posts focus on health and environmental concerns, including one that links to a study estimating humans ingest a credit-card size amount of plastic each week. Another explains cotton microfibers break down in water within a few months. Synthetic microfibers, on the other hand, can take between 20 to 200 years to break down. Bishop also created a list of stores where people can buy cotton-rich clothes and other products, such as backpacks. Bishop saw this as an opportunity for the cotton industry to have better messaging. Cotton producers typically have to defend their practices, including their use of chemicals like pesticides. Bishop said cotton growers have used less chemicals over the years due to poor production, particularly in comparison to the amount of chemicals used for synthetic fibers. By raising awareness on the dangers of man-made synthetic fibers, they could help their cause and the environment. 'This is a place where we can actually be on the offense and say, 'Hey, you're wearing petroleum and it's going to hurt you and the planet,' Bishop said. Balaji Rao, a professor and microplastics researcher at Texas Tech University, said synthetic fibers are designed to be stable and not degrade. When they break down over time, Rao said, the plastics enter the environment and stay there. 'It's not that they stay forever, but long enough that they can potentially impact the environment,' Rao said. 'Natural fibers do degrade because they are designed by nature.' According to the National Oceanic and Atmospheric Administration, microplastics are found throughout all sources of water — from the ocean to tap and bottled water. One study, published in the 2024 Proceedings of the National Academy of Sciences, found that plastic contamination is in every step involved in the production of drinking water, from when the water is drawn from a well to when it's in the bottle. Rao said this is the case with the food packing industry, too. However, he said it comes down to the cost of production, just like with clothes. Replacing a shirt made of cotton as opposed to polyester would be more environmentally friendly, he said. But the question for consumers is the cost. 'If we can develop the industry to make these naturally derived plastics and fibers, I think it would be a great value for the environment,' Rao said. 'That's something that would require policies and initiatives to make that happen. It's going to be a slow process.' Hagood, the cotton producer, doesn't want more regulations. Instead, he wants people to be more aware of what's on their clothing labels. He thinks Kennedy will look into it, as the health secretary has honed in on microplastics in food production. He also posted on social media last year about microplastics found in the human brain. The more people know about synthetic fibers, Hagood said, the better. 'We're out here struggling because we can't get enough demand to get enough support with our prices,' Hagood said. For Hagood and other cotton growers, it could be the difference in both their success and the well-being of future generations. Hagood has been growing cotton for 46 years and faced the shaky markets, water scarcity and extreme weather events that come with the territory. The fact that he's now fighting fast fashion, on top of the other complications that come his way, is a surprise to him. 'It's mind-boggling to me that this isn't a larger public conversation,' Hagood said. This story was originally published by The Texas Tribune and distributed through a partnership with The Associated Press.


USA Today
an hour ago
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Grandma's trash turned Gen Z's treasure: Estate sales are the newest craze
Environmentally-conscious young people are heading to estate sales for low cost, well-made products. VIENNA, Virginia ‒ At noontime on a recent summer Friday, about two dozen cars were parked along a tree-lined culd-a-sac in this suburb 30 minutes outside of the nation's capital. A blue yard sign directed people to a house at the end of the street with a simple, beckoning message: 'Estate sale this way.' Women in their 20s and 30s meandered to their cars carrying cardboard boxes piled high with books, holiday decorations, clothes and picture frames. Across the country, scenes like this are becoming more common, as young people looking to shop in more sustainable ways are gravitating toward estate sales – rather than large retailers – to find low cost well-made products. In the past six months, the online estate sale marketplace Everything But the House saw a 28% increase in business, with much of that driven by young people, Chief Commercial Officer James Ferguson said. The company saw an 18% uptick in sales among people aged 25 to 35 in the first half of the year, he said. "There's a concept of quality and value from things that maybe are older or were gently used in a previous life. We call it pre-loved," he said. "They're seeing the opportunity to get something unique." Estate sales on the rise Raquel Sobczak, 25, began attending estate sales after the COVID-19 pandemic to find deals on clothes and trinkets she could use to decorate her house. This year, she said she made a commitment to buy only secondhand goods. Now, the Arlington, Virginia resident said she attends sales at least two or three times a month. 'It's better for the environment, but it's also better for my wallet to go and buy stuff secondhand,' Sobczak said, while shopping at a July 18 estate sale. 'I am not in a place where I could afford to go pay a few hundred dollars for this,' the 25-year-old said, holding up an ornate cuffed bracelet with a price sticker dangling from the side. 'But I could swing 20 bucks.' Gen Z consumers' rising interest in estate sales follows a broader demand among the age cohort over the last decade for thrifted goods. Young people began frequenting resale stores like Goodwill out of a desire to reduce their carbon footprint and shop more sustainably. In 2021 alone, 42% of Gen Z and millennials said they had shopped for secondhand clothes, according to a survey conducted by the online consignment site ThredUp. Some young people told USA TODAY they are now turning to estate sales after finding the inventory at thrift and vintage shops overrun with fast-fashion and cheap goods. 'I know if I'm going to an estate sale, I'm probably going to find real treasures that have been cared for by people,' said 27-year-old Edie Guy, who lives in Mount Vernon, Virginia. 'Sometimes you'll find that at thrift shops, but I feel like less and less because everyone and their mother is kind of donating to thrift stores just to get stuff cleaned out of their house.' Guy begrudgingly visited estate sales with her mom and grandmother when she was a child but said she didn't become interested in them until after college, when she needed to decorate her new apartment. As she and her husband look to furnish their first home, Guy said estate sales have become a life- and money-saver. 'The quality you get is unmatched,' she said. 'We can get an incredibly high quality crafted piece for $300, versus something online that was mass produced for like, you know, $5,000." Attracting young consumers Some estate sale companies have begun to capitalize on the increased interest from younger generations. an online marketplace and directory for in-person estate sales, has taken steps to attract Gen Z and millennial consumers on social media, company general manager, Marika Clemow, said. 'We can appeal more to them in that, not only are you buying something at a fairly decent price that's durable and long lasting ‒ but, you're not putting more plastics into the earth,' Clemow said. 'This generation is a little more open to items at estate sales not feeling like old, worn stuff, but being old reusable stuff.' Rising inflation and tariff concerns also may have a hand in Gen Z's new attraction to estate sales. In the past six months, Clemow said she's seen an uptick in people searching the digital marketplace for durable goods, like furniture, tools, school supplies and baby ware. Meanwhile, searches for luxury goods, like Rolex watches, have dipped. Diane Rotondo, who runs a Blue Moon Estate Sales franchise in Fairfax County, Virginia, said she's seen a similar demand for furniture. A couple of years ago, Rotondo said she couldn't get people to buy antique four-poster bedframes and now, young consumers are snatching them up early. "The cost of goods are going up and up and up and it makes it even more impossible to get the things you like," Rotondo said. "When you can go to find something that you really like and pay so much less than what you would in a store, it's just a pleasant experience." When asked about what she believes is drawing more people to estate sales, Rotondo said: 'the adventure.' 'It gives somebody the opportunity to treasure hunt in the modern day,' she said. 'It's like a little museum, but you get to purchase it and give it a new journey instead of it ending up in a landfill.'


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