The accounting and consulting giant Deloitte told its UK staff that it would reduce promotions, lower the average salary increase, and cut bonuses due to reduced profits.
Deloitte UK will increase salaries for UK employees by 2.9% next year. This is a decrease from the 5% rise in the previous year. The reason for this, according to an email sent to staff by UK senior partner Richard Houston earlier this week and seen by Financial Times, was “the need for caution due to the current market outlook”.
The company said that it will also promote 5,500 employees, compared to the 6,800 promotions made last year and the above 7,000 in the year prior.
The email said that employees in the consulting arm of the Big Four firms would not receive their full bonuses. These would be reduced by an average of 20%. The email also stated that partners’ salaries would be affected.
Houston wrote that Deloitte’s consulting business “faced a challenging year and fell far short of its goals in terms of performance”.
“At the beginning of FY25, our expectations were for greater economic stability and gradual growth opportunities. He said that an early election, the geopolitical complex and unexpected economic headwinds (such as changes in trade policy) have caused market uncertainty.
The tax and legal division, as well as the company’s deal business, have exceeded profit expectations. They are eligible for full bonuses. Houston stated that the bonus structure was changed to better reflect “variations in our business’ performance”.
Deloitte UK stated: “Amid the ongoing uncertainty in the market, we are happy to be able to recognize our people’s hard work this year with salary increases and bonuses. These benefits are in addition to other benefits, such as fully-funded private medical insurance and recently enhanced family policies. We also offer flexibility and choice when it comes to our working methods.
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