The big 4 are once again getting ready for a downturn. The downturn has already hit the consulting market and Deloitte is making moves to address.

They are going through a huge internal restructuring to deal with this. This is reportedly the largest reorganization in a decade for Deloitte.

There will be 2 new units that are created as part of the reorg. Those units are going to be

  1. Strategy Risk & Transaction
  2. Technology & Transformation

The other two units will be the old school Audit and Tax.

What does this mean overall? Not that much. Every time there is a downturn in the economy consulting is always first to get cut. Deloitte is the big 4 accounting with the most exposure to consulting, so it makes sense that they are doing this.

Previously the firm had five units. Those units were

  1. Audit
  2. Tax
  3. Consulting
  4. Risk Advisory
  5. Financial advisory

Joe Ucuzoglu told the firm that this will position the firm to be stronger in the future. There’s no way of know this. It’s just a political statement that we’ve come accustomed to in the big 4 accounting firm.