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
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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. 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