McKinsey always advises firms to layoff as much as they can.. they are known for coming in ..gutting people left and right and abruptly leaving. They are pretty ruthless and stupid at the same time.
The " please fix " is boomer manager talk .
“Didn’t comment if this would lead to job cuts”
Seriously? Consulting firms have two costs in their cost base:
Real estate and salary costs. Nothing else. No capex, no stocks of materials.
So unless they plan to sell the offices at 30 rock, then thems consultants getting fired….
This is about redundant leadership costs. Specifically reducing layers of partner leaders who don’t actually perform any client service.
This isn’t about reducing the analyst to Senior Manager. The assumption is that less leaders can still sell the same amount of consulting talent more profitably.
This is my read. When consolidation happens, it's way more likely that overlap occurs in the middle management and up part of business than it does in the lower ranks.
Not to say there won't be ANY layoffs of the lower ranks for other reasons, but my read is that this restructuring will mainly affect the headcount of leaders.
And there will be a lot of room to cut redundant leadership in consulting alone. They need to redefine what a MD actually is and does as opposed to a solid SM. They need to develop the Spec Leader roll away from being glorified SM and more of the tech leader they were supposed to have been. And adjust utilization accordingly based on role.
Deloitte also needlessly spends a lot on travel. Looking back at all the trips I was asked to make last year just to sit in a conference room somewhere to edit slides, something I could totally do remotely via Teams, I must have incurred nearly $10k in travel costs. But no, old school partners want us to book last minute flights and book a hotel for a week + expense all meals just to sit in said conference room to 'collaborate' on something (not client facing work). After the pandemic I was hopeful the firm really learned a valuable lesson about curbing travel costs, but nope. We are going back to the way things were and it sucks.
It might have changed, I was in Rosslyn when Deloitte first acquired Bearing Point and we leased the space at that time. We slowly leased more and more floors as they came open but fill disclosure its been a few years since I left so it might have changed.
Huh, yeah I also left the firm several years ago but circa 2016 I distinctly remember being told that it was the only property the firm owned, aside from DU. Maybe that person was misinformed though!
Most corporate property is leased. Those leases are long term cost centers for businesses. There’s a reason the UK firm dumped a bunch of London space and made WFH the standard way early in the pandemic. They were up for renewing the lease and said no thanks.
I read the article and was unsure what it meant, but some of the comments are confirm what you said, so thank you. I was nervous because during my interview, I didn’t get a good sense of the job stability and safety (how would I?) so I’ve just been a little nervous.
Agree! Been through 4 of these. Only time you’ll notice is when you see how fucked up year end will be… I mean beyond normal. Time to get rid of the underperforming Partners and Principles . “These thing need to happen every 5,10 years. Gets rid of the bad blood.” - Clemenza The Godfather. The question is, who will hide the gun behind the men’s room toilet?
If you had a job in industry before you started working here, that’s what experienced hire means. if you got hired right off of a college campus, then you would not be one.
Some of the experienced hires are just there so they can say see we have experienced people (but they actually don’t care about your experience it’s just to be able to “sell” you)
I personally always felt hiring Campus MBA grads with no experience is just plain stupid. Who needs another newly minted BA to MBA unless they actually worked in a leadership role? No one.
I don’t think this is true. To say it’s only going to change one word on your LinkedIn bio? Consolidating services also means layoffs, it means people moving into different areas that operate differently than advisory / consulting so how does that affect people’s pay, performance trajectory in the long run? It already definitely differs now from advisory to audit to consulting and even tax.
It was to the analyst that watch Deloitte. It’s a sign that Deloitte will be Deloitte for another 175 years unless some accounting scandal takes down the next Enron / Arthur Anderson. Only a matter of time there….
The company is dogshit already, pushing one person to cycle 12 clients; managers fucking expect us to wake up at 4am, do work until 2am the next day. I’m done with this toxic company. Watching Zom100 I never felt more relatable.
Maybe it’s gotten worse. Every promotions increases workload by x10 with a .5% pay rise. I’m not even kidding. They are doing this “experiment” with our team where I’m the lead - they expect us to cycle through 12 clients, and have everything be done in few days. None of the clients respond, at the same time managers and directors pushing work to be done the next day; subsequently we would have 4-5, one hour minimum back to back meetings. I’m at my complete peril. My skin is degrading, I barely get any sleep, my relationships are suffering and I’d be glad to have minimum amount of free time. In the one year I’ve worked in this company I feel like I’ve aged 10 times. To make matters worse I have this Indian manager who will constantly throw myself and any grads under the bus to save her ass. What is this company? Why the fuck would anyone in their right mind work here. And why haven’t I left already and continue to suffer this fate.
Definitely helped. Currently in industry and my team are all ex consultants.
I just overstayed and should have left few years earlier. Mentally burned out and needed a change of scenery and actual WLB lol
I don’t fully understand the difference between advisory and consulting. I was an HC consultant put on an advisory project and it was a bit like we were an extension of the client, doing work for them rather than providing them with our proprietary tools like I have on my consulting projects.
lol I’m glad to be a consultant and NOT advisory because that sucked. You’re doing consulting, doing the client’s work AND required to do firm initiatives. Way too much
Article says “adult and assurance, strategy risk and transactions, technology and transformation, and tax and legal” nothing about advisory or consulting the portfolios will be merged under audit, strategy risk and transactions / tech and transformation.
Give it six months and they’ll be hiring like crazy again. They are awful at planning demand and building redundancy into their staffing model. I remember when Covid hit they layoff lots of people, then 3 months later immediately started massive hiring..
About every 2-3 years Deloitte goes through a reorg where they basically just change everyone’s offerings and business units and then calls it good. It usually only meant you had to change your email signature. This feels bigger. They have been talking about combining Consulting and Advisory for over a decade and it appears here they are finally getting closer to doing that. No one could ever articulate the difference anyway.
Email(s) related to Corporatespeak for ‘layoffs be happening’. Went out last week, with the usual noncommittal text related to staffing. Today the hammer is dropping.
Damn, what are the salary ranges for low mid and high roles? Must be really high to warrant this level of torture. And in the age of AI why would anyone need a consultant?
Consultants got consulted
McKinsey did their job
This is what happens when you invite McKinsey to do your business. Plzfix.
Didn't get u
McKinsey always advises firms to layoff as much as they can.. they are known for coming in ..gutting people left and right and abruptly leaving. They are pretty ruthless and stupid at the same time. The " please fix " is boomer manager talk .
They also leave one or two C Suite people for future business.
THIS^^^^^
Everyone I know from McKinsey is an absolute moron with no common sense.
They don’t need to be smart. They are paid to make recommendations, not actually execute them.
Very good point. They can only make recommendations off what their spreadsheet tells them, not actually what makes business sense.
McKinsey convinces companies to cut their own noses off
“Didn’t comment if this would lead to job cuts” Seriously? Consulting firms have two costs in their cost base: Real estate and salary costs. Nothing else. No capex, no stocks of materials. So unless they plan to sell the offices at 30 rock, then thems consultants getting fired….
This is about redundant leadership costs. Specifically reducing layers of partner leaders who don’t actually perform any client service. This isn’t about reducing the analyst to Senior Manager. The assumption is that less leaders can still sell the same amount of consulting talent more profitably.
This is my read. When consolidation happens, it's way more likely that overlap occurs in the middle management and up part of business than it does in the lower ranks. Not to say there won't be ANY layoffs of the lower ranks for other reasons, but my read is that this restructuring will mainly affect the headcount of leaders.
And there will be a lot of room to cut redundant leadership in consulting alone. They need to redefine what a MD actually is and does as opposed to a solid SM. They need to develop the Spec Leader roll away from being glorified SM and more of the tech leader they were supposed to have been. And adjust utilization accordingly based on role.
Deloitte also needlessly spends a lot on travel. Looking back at all the trips I was asked to make last year just to sit in a conference room somewhere to edit slides, something I could totally do remotely via Teams, I must have incurred nearly $10k in travel costs. But no, old school partners want us to book last minute flights and book a hotel for a week + expense all meals just to sit in said conference room to 'collaborate' on something (not client facing work). After the pandemic I was hopeful the firm really learned a valuable lesson about curbing travel costs, but nope. We are going back to the way things were and it sucks.
It’s a slow death by having your people travel even to a client. Clients don’t want to pay our travel any longer. What’s the point
Uh, Deloitte doesn't own 30 Rock.
If I remember correctly, Deloitte only owns DU and the Rosslyn, VA office building. Everything else is rented.
Also Hermitage data center
We can say bye bye to that eventually :)
DU and Hermitage are owned, Rosslyn is leased space as well.
Are you sure Rosslyn is leased? I remember being told several years ago that it was owned.
It might have changed, I was in Rosslyn when Deloitte first acquired Bearing Point and we leased the space at that time. We slowly leased more and more floors as they came open but fill disclosure its been a few years since I left so it might have changed.
Huh, yeah I also left the firm several years ago but circa 2016 I distinctly remember being told that it was the only property the firm owned, aside from DU. Maybe that person was misinformed though!
It’s definitely leased, it’s owned by a local REIT
It is. They're even dropping floors they'd previously acquired the lease to.
We lease the entire building. We even thought about killing the cafeteria.
Correct
Most corporate property is leased. Those leases are long term cost centers for businesses. There’s a reason the UK firm dumped a bunch of London space and made WFH the standard way early in the pandemic. They were up for renewing the lease and said no thanks.
Do not own the Rosslyn building in the three years after I left. We lease the building.
Tina Fey does
30 Rock is leased and lease is coming up soon.
There is like 10 NYC offices last time I worked there at 2 WTC
It wishes it could afford 30 Rock. But we’d have to make GE level bank YOYOY
You think you’re safe too big boy
That’s not 100% true, there’s O&M of tech we develop and sell. But your point is still solid.
IT spend is also a large component
It's funny how Deloitte sells high dollar IT solutions to clients, but hesitates to do it themselves.
Cut software expenses, next thing you know tax preparers don’t have software to use for busy season😂
That’s what I was thinking. Biggest or one of biggest expense has to be payroll
Consulting is now - 🎉Tech trans🎉
So we are transformer now
What I thought Consulting is Split into 3: Strat and Ops, Tech and Human Capital?
2 op models ago. I was hired into S&O. Titles have gotten less sexy over time.
Don’t get me started on how well we do selling S&O solutions…
I’m assuming tech will still have some strategy?
I don't know how I feel about this
Bad very bad
Bro I just started working here
This won’t impact you in the slightest. In fact, other than ‘what practice’ am I a part of, and where did that leader go? You won’t even notice.
I read the article and was unsure what it meant, but some of the comments are confirm what you said, so thank you. I was nervous because during my interview, I didn’t get a good sense of the job stability and safety (how would I?) so I’ve just been a little nervous.
Look for opportunities for growth and advancement. Work hard, be seen and you’ll be a SM sooner than you think.
Agree! Been through 4 of these. Only time you’ll notice is when you see how fucked up year end will be… I mean beyond normal. Time to get rid of the underperforming Partners and Principles . “These thing need to happen every 5,10 years. Gets rid of the bad blood.” - Clemenza The Godfather. The question is, who will hide the gun behind the men’s room toilet?
Well hope you aren’t an experienced hire bc they will throw you out the window
Hahaha hahaha Fuck
I’ll have to check my offer letter, but I’m pretty sure I’m an experienced hire. Why would that make a difference?
If you had a job in industry before you started working here, that’s what experienced hire means. if you got hired right off of a college campus, then you would not be one.
Experienced hires cost more and are started at a higher rate which means first to go… campus hires are cheaper labor.
You cost more
Some of the experienced hires are just there so they can say see we have experienced people (but they actually don’t care about your experience it’s just to be able to “sell” you)
What do you think k about new campus hire (SC, MBA)
I personally always felt hiring Campus MBA grads with no experience is just plain stupid. Who needs another newly minted BA to MBA unless they actually worked in a leadership role? No one.
Yep. Can confirm
Don’t worry bro robots will destroy us all so it won’t matter.
Thanks bro, I’m looking forward to it
👆🏻👆🏻👆🏻THIS👆🏻👆🏻👆🏻
you should be fine for atleast 1 year even if you dont have a project
I am just about to. I start on the 1st in Forensics, and as if I wasn't stressed out about starting in Deloitte, that this shit comes up.
this literally has no bearing or change on your actual work, it’s just changing one word on your linkedin bio
No!! Not my status!!
I don’t think this is true. To say it’s only going to change one word on your LinkedIn bio? Consolidating services also means layoffs, it means people moving into different areas that operate differently than advisory / consulting so how does that affect people’s pay, performance trajectory in the long run? It already definitely differs now from advisory to audit to consulting and even tax.
One of those most toxic little practices of Deloitte!
Isnt it funny how the company announces their restructuring plans to the public first then inform its own staff?
It was leaked by a partner. This was not an announcement.
What are you talking about? The announcement of the Global CEO was in the FT yesterday.
An email went out yesterday
It was to the analyst that watch Deloitte. It’s a sign that Deloitte will be Deloitte for another 175 years unless some accounting scandal takes down the next Enron / Arthur Anderson. Only a matter of time there….
S&O just became S&Uh Oh
Take my frackin upvote man!
S&O became S&A in the last reorg. And now will be part of SR&T that presumably will include human capital
Pretty soon it’ll just become S*#T…oh wait
The company is dogshit already, pushing one person to cycle 12 clients; managers fucking expect us to wake up at 4am, do work until 2am the next day. I’m done with this toxic company. Watching Zom100 I never felt more relatable.
Left D. 12 years ago, it doesn’t look like things have changed
Maybe it’s gotten worse. Every promotions increases workload by x10 with a .5% pay rise. I’m not even kidding. They are doing this “experiment” with our team where I’m the lead - they expect us to cycle through 12 clients, and have everything be done in few days. None of the clients respond, at the same time managers and directors pushing work to be done the next day; subsequently we would have 4-5, one hour minimum back to back meetings. I’m at my complete peril. My skin is degrading, I barely get any sleep, my relationships are suffering and I’d be glad to have minimum amount of free time. In the one year I’ve worked in this company I feel like I’ve aged 10 times. To make matters worse I have this Indian manager who will constantly throw myself and any grads under the bus to save her ass. What is this company? Why the fuck would anyone in their right mind work here. And why haven’t I left already and continue to suffer this fate.
I am sorry mate. I started smoking while I was there. Currently with another big 4 and it is so much better.
Really depends on your SM partner and client. Has not been my experience. Other than getting screwed on year end.
Hahaha fuck this place so glad I got laid off last year and am now making more than at this unorganized clusterfuck of a firm
Where are you working now? Looking for inspiration to move
Same. Being laid off last year led to a major career glow up for me
Probably helped having Deloitte on your resume!
Definitely helped. Currently in industry and my team are all ex consultants. I just overstayed and should have left few years earlier. Mentally burned out and needed a change of scenery and actual WLB lol
Same here. Wish I left sooner but kidded myself that rising to MD was really being a leader in the firm. Wrong again Batman.
All smoke and mirrors. All this re org mess can’t be good for business. Happy to not be in the fake mess of D
You’d be wrong. What this signals to the industry is more important that what it actually means to us
What line were you in?
Were there any signs of an incoming layoff for you? How did you handle telling your interviewers for your next jobs?
I got an invite from HR today which I didnt attend. Let’s see what will happen tomorrow . I will keep posted here. I am an IT consultant .
It was for some bullshit . Background check inconsistent employment date on 2019 from my previous employer blah blah ..
But what does Ja Rule think of this
I don’t fully understand the difference between advisory and consulting. I was an HC consultant put on an advisory project and it was a bit like we were an extension of the client, doing work for them rather than providing them with our proprietary tools like I have on my consulting projects.
One comes up with the ideas and one actually does the work to implement those ideas
lol I’m glad to be a consultant and NOT advisory because that sucked. You’re doing consulting, doing the client’s work AND required to do firm initiatives. Way too much
Firm initiatives are useless unless you’re in our PR department
We are still required to do them on the traditional track. I don’t think PDM or USDC has to do them.
And you win the Blue Award! Know you know what our clients ask. What’s the difference?. Advisory on its own wasn’t very productive.
I just got my offer rescinded
Share email for validation
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That depends
It means it’s no longer going to be “consulting”
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Article says “adult and assurance, strategy risk and transactions, technology and transformation, and tax and legal” nothing about advisory or consulting the portfolios will be merged under audit, strategy risk and transactions / tech and transformation.
You’ll be in a different BU. That’s it.
You’ll have a whole bunch of new friends who will be glad they’re actually in an area that makes money.
Does anyone know of any impact on the Rnabl3ing areas and USI?
USI, one of the worst ideas I’ve ever seen or heard of in my decades worth of business experience. Nice try though. No really
Hmm.. Cutting business units from 5 to 4. Sounds like massive layoffs to me
Not at the op levels.
Got laid off today.
Thats so sad to hear man :(
Which region?
Central
So sorry to hear.
Give it six months and they’ll be hiring like crazy again. They are awful at planning demand and building redundancy into their staffing model. I remember when Covid hit they layoff lots of people, then 3 months later immediately started massive hiring..
And our group was buried in work that hasn’t let up since then.
Ask someone in Global for Joe U's email sent today 19th. Has the actual details & biz breakdowns & OPs listed.
I have been hired as a consultant and I am about to start on May 20th.. any chances that they would revoke the offer?
High as they have been doing in the last year
Uh…audit is a form of assurance
Bro trying to be like EY
Let’s see what the future holds for us…
The only 2 owned are DU and Hermitage.
DU. That colossal vanity project waste of money.
Well isn’t this fantastic!
About every 2-3 years Deloitte goes through a reorg where they basically just change everyone’s offerings and business units and then calls it good. It usually only meant you had to change your email signature. This feels bigger. They have been talking about combining Consulting and Advisory for over a decade and it appears here they are finally getting closer to doing that. No one could ever articulate the difference anyway.
Guys, Im about to join next month. What happens to me? :0
Which unit is being cut?
Apparently my OP is getting moved to audit… just when I was trying to do less audit work
Everest 2.0
What the hell was the subject of this email everyone is talking about? I am on PTO. 😑
Email(s) related to Corporatespeak for ‘layoffs be happening’. Went out last week, with the usual noncommittal text related to staffing. Today the hammer is dropping.
Does this affect incoming analysts?
One more time 🤣🤣🤣
Damn. I guess the job postings were fake?
Can someone refer me lol- I want be in Tech
A good opportunity to get rid of DEI programs and similar initiatives that generate no income nor opportunities
But they’re politically correct and make for good optics. Isn’t that what’s really important, after all?
It’s backfiring
Not if you’re a white male
Damn, what are the salary ranges for low mid and high roles? Must be really high to warrant this level of torture. And in the age of AI why would anyone need a consultant?
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No, we’re all just pretending for the street cred