Latest news with #RichardHouston
Yahoo
22-05-2025
- Business
- Yahoo
Deloitte to slash bonuses and scale back hiring as profits slump
Deloitte has warned staff that it will slash bonuses and scale back hiring in response to a slowdown in profits this year. 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.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Time of India
22-05-2025
- Business
- Time of India
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. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
22-05-2025
- Business
- Yahoo
Deloitte UK is cutting some bonuses and promoting fewer staff after falling short of targets
Staff in one of Deloitte's four UK divisions will get lower bonuses after missing profit targets. The firm will also promote fewer staff this year, according to an internal email seen by BI. The promotions move was demotivating and has "dampened" the office mood, a Deloitte employee said. Deloitte told employees in one of its UK consulting divisions to expect lower annual bonuses following weaker-than-expected financial performance. Richard Houston, a senior partner and chief executive of Deloitte UK, wrote in a companywide email on Tuesday that employees in the technology and transformation (T&T) consulting division would receive an average of 80% of their annual bonus. Partners in the division will also face a drop in annual rewards, Houston said in the memo seen by Business Insider. The memo was first reported by The Financial Times. The T&T business had "faced a particularly challenging year and fell materially short of its performance goals," Houston wrote. Bonuses have always been linked to individual and firm performance. However, for the 2025 financial year, they will also take into account performance variations in each of Deloitte's four business lines. The shift means that workers in Deloitte's other three business lines — which cover deals, tax and legal, and audit and assurance services — will retain their full bonus. Those three divisions have either exceeded targets or, in the case of the audit and assurance branch, had still increased profits in the 2025 financial year, Houston wrote. Deloitte will also promote fewer employees than in previous years, Houston said. The firm would promote 5,500 employees, or about 25% of the UK workforce, at the start of the next financial year, he said. In the previous year, 28% were promoted, Houston said. A Deloitte consultant in the T&T division said the news about promotions was demotivating and had "dampened" the mood. They added that their division had taken "a beating." It's "not the best feeling since T&T functions have historically pulled the firm forward in times of crisis," the employee added. Deloitte UK's total profits for its 2025 financial year, which ends on May 31, would be "slightly ahead of last year" but "below our original plan," Houston wrote. "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," he said. Deloitte's global revenue climbed 3.1% to $67.2 billion in the 2024 financial year, which marked a sharp slowdown in growth compared to the 14.9% increase in 2023. The firm's UK arm has reorganized its business divisions and laid off workers as it grappled with an industrywide slowdown in demand for consulting services that has hit revenue growth. In October 2024, Deloitte UK cut its spending on staff travel and expenses by more than 50%. Houston addressed the cost-cutting measures in Tuesday's email, acknowledging "it has not been easy" for teams to be unable to meet in person for much of the year. He said the efforts to manage costs had "made a significant difference" and had directly contributed to bonuses for the 2025 financial year. A Deloitte UK spokesperson told BI: "Amid ongoing market uncertainty, we are pleased to be able to recognize 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." Have a tip? Contact this reporter via email at pthompson@ or Signal at Polly_Thompson.89. Use a personal email address and a nonwork device; here's our guide to sharing information securely. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Deloitte to establish four technology centres across UK
Deloitte UK is set to establish four new technology delivery centres, aiming to offer advanced technology solutions to clients across the UK. These centres, forming part of Deloitte's Technology & Transformation business, will start operations on 1 June 2025 in Belfast, Cardiff, Manchester, and Newcastle. Initially, these centres will consolidate 750 of Deloitte's technologists to develop and implement technology solutions tailored to the dynamic needs of UK businesses. The focus areas will include app design, cloud engineering, and the integration of AI into various software and systems, such as SAP, to facilitate business transformation. These technology centres are anticipated to double the headcount to 1,500 within the next three years. The firm will offer multi-year technical training programmes to nurture new joiners into becoming experts in business solutions and technology delivery. Deloitte Belfast already has a workforce of more than 1,000. The new Belfast facility is poised to be the largest of the technology centres, with an additional 500 jobs expected to be created over the next three years. Deloitte regions managing partner Richard Bray said: 'Investing across the UK is a priority for Deloitte, and our technology centres are key to this ongoing commitment. I'm particularly excited about the opportunities these centres create for people wanting to start a new career in technology. 'We chose the North East as the pilot last year, initially hiring in a 25-strong cohort from a diverse pool of over 500 applicants - including individuals without prior technology experience, veterans, and those returning to work after a career break. We've since grown further in the North East and I look forward to welcoming many more talented individuals to Deloitte as we grow our business throughout the UK and create jobs for the future.' Furthermore, as per a report by the Financial Times (FT), Deloitte has informed its UK employees of impending changes, including fewer promotions, reduced average salary increases, and cuts to bonuses on average by 20% within the consulting division due to disappointing profits. In an email to employees, the company's senior UK partner Richard Houston indicated that the firm's overall profits for the financial year were "below our original plan" but "slightly ahead of last year". The consulting arm of Deloitte experienced a particularly challenging year, significantly underperforming its goals, the report said. The audit practice also fell short of profit expectations. However, the firm's deals business and tax and legal arm exceeded profit expectations and will receive full bonuses, stated FT. Deloitte's global revenues in 2024 saw a 3.1% growth, marking its 'worst performance' in 14 years, primarily due to a downturn in consulting services. To counteract this, Deloitte reduced its travel and expenses budget, which Houston acknowledged as a difficult but necessary measure to allocate funds for this year's bonuses. Deloitte plans a 2.9% salary increase for UK employees next year, a cautious approach reflecting the current market outlook and the recent 3.4% inflation rate. The firm also plans to promote approximately 5,500 employees, a reduction compared to previous years. In April 2025, Deloitte announced that it would shed jobs in its US consulting division. "Deloitte to establish four technology centres across UK" was originally created and published by International Accounting Bulletin, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Times
21-05-2025
- Business
- Times
Deloitte cuts back on bonuses, pay and promotions
Deloitte has told its army of accountants, consultants and technology experts in the UK that there will be fewer promotions, smaller pay rises and cuts to bonuses this year. Richard Houston, the Big Four firm's UK senior partner, sent an email to its 27,000 UK staff on Tuesday, cautioning that the group's profits for the current financial year, which ends next week, were 'below our original plan', even though they were 'slightly ahead' of the previous year. In the email, first reported by the Financial Times, Houston, 57, said Deloitte's consulting business had 'faced a particularly challenging year and fell materially short of its performance goals'. The audit practice also performed worse than management had hoped for. • Are AI and global markets about to
