Active Stocks
Wed Jun 19 2024 11:13:51
  1. Tata Steel share price
  2. 179.65 -0.83%
  1. HDFC Bank share price
  2. 1,630.50 1.35%
  1. State Bank Of India share price
  2. 847.40 0.33%
  1. ICICI Bank share price
  2. 1,143.50 1.82%
  1. Wipro share price
  2. 490.50 -0.27%
Business News/ Companies / News/  Deloitte plans restructure to cut costs, will likely pare down to 4 business units from 5, says report
BackBack

Deloitte plans restructure to cut costs, will likely pare down to 4 business units from 5, says report

Deloitte plans to restructure by reducing business units to four amidst cost-cutting measures ahead of a market slowdown, with a focus on audit, strategy, technology, and tax. The Big Four accounting firms are also facing challenges as client demand decreases due to economic uncertainty.

Deloitte will reorganize its main business units down to four arms from five, FT reported (File Image)Premium
Deloitte will reorganize its main business units down to four arms from five, FT reported (File Image)

Deloitte is planning to revamp its structure to reduce expenses ahead of an anticipated market slowdown, the Financial Times reported.

The firm will streamline its primary business divisions from five to four, a source told the paper. These include the audit and assurance, strategy, risk and transactions, technology and transformation, and tax and legal units.

A representative for the company told Bloomberg Deloitte had recently completed a process “to modernise and simplify" its strategy.

The prominent accounting firms, commonly known as the Big Four — Deloitte, PwC, EY, and KPMG — have begun scaling back in certain areas due to declining demand from clients, the Bloomberg report added.

The surge in demand for their consulting services during the COVID-19 pandemic, particularly for advice on remote work and supply chain disruptions, is now tapering off due to global economic uncertainty. This slowdown has affected recruitment and salaries within the accounting firms, it said.

Practice to Check Business Credibility

In November 2023, the consulting firm said it is set to introduce a practice to help businesses measure the extent of trust regulators, investors, customers and the public place in them to help them identify areas for improvement and raise their trustworthiness among stakeholders.

Deloitte added that it is assessing the top 1,000 companies by size in India, including listed ones, based on about 90 parameters to figure out where they stand in terms of stakeholder trust. The ranking will be privately shared with the companies. It expects there would be takers for the new service given that regulators, customers and investors attach a premium on trust, and businesses going for public offers could use their ranking to help investors decide.

A Deloitte study a few years ago covering companies in advanced markets such as the US, found that highly trusted companies enjoyed 15-40 percent higher market capitalizations compared to less trusted rivals, said Sriraman Parthasarathy, partner, enterprise trust, Deloitte India.

The initiative is based on the premise that trusted companies can better navigate volatility, particularly during periods when geopolitical trust deficits impact international investments as well as trade.

3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 19 Mar 2024, 11:42 AM IST
Next Story footLogo
Recommended For You