Deloitte intends to reduce its US workforce by approximately 1,200 jobs, which represents approximately 1.4% of its total workforce in the country.
The company is responding to a decline in its consulting business, which has caused confusion among current and potential employees, Bloomberg reported.
“Our U.S. businesses continue to experience strong client demand,” Jonathan Gandal, managing director of Deloitte, said in an email. He declined to say where growth is slowing. Deloitte’s U.S. workforce grew 25% to more than 86,000 last year, according to a company report.
Deloitte’s downsizing is not as significant as some of its competitors in the professional services industry. KPMG announced in February that it would lay off less than 2% of its US workforce, while Accenture is cutting 2.5% of its total workforce and Ernst & Young is cutting 5% of its US workforce.
In addition, McKinsey & Co. plans to cut approximately 2,000 jobs, one of the largest reductions ever.
Some of these professional services firms, which advise clients on layoffs, have also halted their hiring spree that had lasted for several years.
Some are also delaying start dates for new hires. EY, also known as Ernst & Young, is set to hire significantly fewer people this year than originally planned and is grappling with the fallout from its scrapped plan to split into separate units.
According to Tom Rodenhauser, managing partner of Kennedy Research Reports, which tracks the sector, the rapid downturn in the hiring climate has made some recent graduates pursuing careers in consulting uncomfortable.
“Now they’re saying, ‘Do I even want to go in this direction?'” he said.
The Financial Times previously reported on the cuts.