Consulting industry facing massive job cuts worldwide

According to Consulting.uk the global consulting industry will lose an estimated R475 billion because of the Covid-19 crisis.

According to Consulting.uk, the consulting industry is bound to be significantly hit by the Covid-19 crisis, with the global industry expected to lose an estimated $28 billion (about R475 billion) in the wake of the pandemic. 

According to the website, the global consulting industry has grown strongly in the 12 years since the last financial crisis. By the reckoning of Source Global Research, the planet’s consulting scene is now worth a combined $160 billion (about R2.7 trillion), but with the coronavirus having pushed many sluggish economies to the brink of a recession, clients are delaying projects, decreasing their scope or cancelling them altogether. As a result, the revenue of consulting is taking a big hit.

The same website states that Deloitte could be set to offload more than 10,000 of its staff in the U.S, Australia and Canada because of the coronavirus crisis. 

This is supported by the Australian Financial Review, which reported recently that Deloitte Australia announced it would be cutting 7 percent of its global workforce. In a recent virtual firm-wide meeting, more than 700 out the total staff complement of 10,000-plus were told eight days before they would have to leave the company, regardless of their length of service, and even if they were on billable client projects. 

Big four rivals, PwC, KPMG and Ernst & Young, have all also announced wide-scale cost-cutting measures, including asking staff to take pay cuts for at least two months.

Meanwhile, the financial times reports that Accenture will cut up to 900 jobs in the UK as the US-listed consultancy lowers costs due to a decline in work during the coronavirus pandemic. The company told its 11,000 employees in the UK this week that about 8 percent of jobs at all levels would be cut. Redundancies will start this month and conclude by September.