Thread regarding Deloitte layoffs

All Hands Deck Summary

We got a screenshot sent to us (source below) on Friday afternoon with notes that were taken of what was said during one of the all-hands calls on Friday morning. Here’s the notes we were sent:

  • Roughly 5% across-the-board Deloitte US headcount reduction, effective early June. This is average; some practices will be hit much harder than others based on market projections.
  • Affecting up to level of Partner (presumably they will be allowed to retire comfortably?).
  • Separation conversations begin next week w/Talent for Deloitte US (later in June and into July for USI?).
  • People who are let go will have a combination of salary and benefit continuation (what % not indicated), some additional amount in a separation package, 100% payment for remaining PTO, help with unemployment insurance claims process.
  • Additional impact in form of reduced work schedules; impacted employees working ~80% of normal FT equivalent was mentioned, but potentially even greater reduction; executed as reduced work week and commensurate reduction in comp.
  • Workload modification conversations start mid-June, in effect in mid-July for Deloitte US.
  • Reduced workload employees won’t lose benefits (not said: whether employee’s share of benefit costs in % or raw $ contribution will go up).
Source: https://goingconcern.com/layoff-watch-20-deloitte-has-begun-performance-related-separations/
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Post ID: @OP+15jvriXJ

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I'll add some information:

5% is the number being floated for the entire firm. For Consulting, the CEO mentioned "mid-single digits". Consulting is split into Government/Public Sector and Commercial. Our Commercial group is getting hammered while our GPS group is having a phenomenal year. Assuming our split is roughly 70% commercial / 30% GPS, that means the layoffs are concentrated to affect the roughly 35,000 employee group and not the 15,000 employee group. Some of our groups (Travel and Hospitality, for example) are going to be much higher than "mid single digits" and others will be much lower (Healthcare, for example).

Annual culling is roughly 2%-4%, so this is roughly double that. We don't know if there will be additional waves - I guess nothing is off the table.

Our performance year ends in March and our review cycle just finished, so that was one of the drivers behind timing. Our FY ends in end of May.

Don't want to get too much into company financials, but COVID certainly didn't help matters.

I don't check here often, but I'll try to remember to do so if there are any questions.

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Post ID: @bqds+15jvriXJ

That's how they said it on our advisory call. "We will begin these separation and exit conversations starting in June." Then they ended the call with "have a great weekend". My GF was sitting next to me and we both broke out in laughter when they ended with that.

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Post ID: @hlf+15jvriXJ

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