Deloitte has announced that they are considering cutting the pension contributions in the UK. There are 19,000 employees in the Deloitte UK firm.
This will save Deloitte tens of millions of pounds for the UK firm.
Deloitte is looking to reduce the pension contribution rate from 12% to 4.5%. What this means is that Deloitte will only contribute 4.5% of an employee’s salary to their pension. This does not apply to Deloitte UK partners.
We previously discussed that Deloitte cut their summer internship program and cut pay for partners. This is just another step for Deloitte to prevent layoffs. They are chopping away at their expenses as the economy tends to worsen. People things will turn around, but I think it is too late.
While Deloitte is cutting costs and trying to keep employees, you have to realize that other companies are also cutting costs. I’m not sure Deloitte and other big four firms are really thinking about that. I think additional cuts will be needed in the future.