Deloitte Australia slashes 700 jobs in response to COVID-19 impacts

Deloitte Australia slashes 700 jobs in response to COVID-19 impacts

The economic impacts of the COVID-19 pandemic have forced Deloitte Australia to tighten its belt, resulting in 700 staff members being made redundant.

The company says the decision to reduce its workforce of 10,000-strong by 700 was made in response to COVID-19.

Whilst Deloitte's revenue has grown for the financial year by 10 per cent the firm experienced a "significant" decline in revenue in the fourth quarter.

This decline includes a 19 per cent revenue drop year on year in May 2020, and the company anticipates this reduced level of revenue will continue for at least the first quarter of FY21.

The staff reduction equates to approximately 7 per cent across most business units and client service departments, with most of the reductions coming from the consulting and advisory parts of the business.

"From the beginning of the COVID-19 crisis two of our important principles have been to preserve as many jobs as possible while also protecting the long-term sustainability of the firm," says Deloitte Australia CEO Richard Deutsch.

"Unfortunately, the last quarter of our 2020 financial year has seen a substantial drop in revenue and operating profit. We expect this trend to extend into at least the first quarter of our new financial year.

"Today, I have announced a second round of measures that includes a reduction in our workforce, actions that would not have occurred had it not been for the impact of COVID-19."

In April Deloitte announced that it would be making some immediate changes to the business to keep the company afloat during the COVID-19 pandemic including the short term reduction in annualised pay of 8 per cent for the majority of Deloitte Australia's staff.

Updated at 4:57pm AEST on 22 June 2020.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

A game changer? Aspiring to the new standard on workplace mental health
Partner Content
Work health and safety regulators have been more active in the area of mental health ri...
Aon
Advertisement

Related Stories

Go1 founders win Brisbane Young Entrepreneur of the Year Award after decade-long wait

Go1 founders win Brisbane Young Entrepreneur of the Year Award after decade-long wait

After their business became a unicorn amidst the ongoing expansion ...

Cardno shareholders to get a cut from $667m sale of international divisions

Cardno shareholders to get a cut from $667m sale of international divisions

Engineering and consulting group Cardno (ASX: CDD) has sold its US ...

Pacific Fair sale puts the spotlight on buyers for Dexus’ minority stake

Pacific Fair sale puts the spotlight on buyers for Dexus’ minority stake

The Gold Coast’s Pacific Fair shopping centre, fresh from pla...

Victoria opening to vaccinated international arrivals from 1 November

Victoria opening to vaccinated international arrivals from 1 November

With lockdown lifting today in Victoria the state’s governmen...