Deloitte UK CEO to employees: Technology transformation division faced a particular …
Deloitte UK
has announced that it will cut bonuses to 80% for employees in its technology and transformation consulting division and reduce overall promotions after the unit failed to meet profit targets for the 2025 financial year.
Chief Executive
Richard Houston
informed staff in a company wide email that the technology and transformation (T&T) division "faced a particularly challenging year and fell materially short of its performance goals," according to Business Insider, which obtained the internal memo. Partners in the struggling division will also see reduced annual rewards.
The firm plans to promote only 5,500 employees—25% of its UK workforce—compared to 28% promoted last year. Houston said Deloitte's total profits would be "slightly ahead of last year" but "below our original plan" when the financial year ends May 31.
Market headwinds hit consulting demand, says Deloitte UK CEO
Houston attributed the shortfall to continued
market uncertainty
, citing "an early election, geopolitical complexity, and unexpected economic headwinds" that disrupted anticipated growth opportunities. The consulting industry has faced a broader slowdown in demand that has pressured revenue growth across major firms.
Employees in Deloitte's other three divisions—deals, tax and legal, and audit and assurance—will retain full bonuses after meeting or exceeding targets. However, the promotion cuts affect all divisions, with one T&T consultant telling Business Insider the news was "demotivating" and had "dampened" office morale.
The firm has implemented aggressive
cost-cutting measures
, including slashing staff travel and expenses by over 50% in October 2024. Deloitte's global revenue grew just 3.1% to $67.2 billion in 2024, a sharp deceleration from the previous year's 14.9% increase.
Despite the challenges, a Deloitte spokesperson emphasized the firm remains committed to "salary increases, bonuses, and promotions" alongside enhanced benefits packages.
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