Hiring remains strong for Deloitte's outsourcing division, according to reports
Deloitte is making about 170 jobs in Australia redundant, equivalent to about two per cent of its non-partner workforce, as it shifts focus to its outsourcing division, according to reports.
The Australian Financial Review reported the change on Sunday, saying that the Big Four consulting firm told staff of the job cuts this week.
The cuts will be felt across the organisation, according to the report, with a Deloitte representative attributing the move to changes in client demand.
"Like all businesses, we regularly review our workforce needs and have taken considered action where there has been a sustained shift in client demand," the spokeswoman told the AFR.
Deloitte, however, clarified that it is hiring in areas where market demand remains strong.
It is recruiting more than 500 people for its outsourcing division, with the target roles involving technology, data, cybersecurity, taxation, and legal.
Deloitte's outsourcing division, also known as managed services, runs back-office functions including finance, with Australian employees and lower-cost hubs in India.
The Big Four firm wants to triple the division to generate $1 billion in revenue by 2030, the AFR reported. Deloitte recently posted $2.55 billion in revenue in 2025-26, with growth in its tax, legal, and technology work offsetting declines in audit and deals.
Major Big Four shift
The move reflects a wider push among the Big Four – which also includes EY, KPMG and PwC – to secure the stable, recurring revenue generated by outsourcing, according to the report.
PwC Australia is targeting at least $500 million in outsourcing revenue by 2030, while EY Australia says it already runs a $400 million-a-year outsourcing operation.
The shift comes as the Big Four face a difficult advisory market, with demand hit by ethical scandals at KPMG and PwC, as well as by artificial intelligence, the AFR noted.
The job cuts come after Deloitte came under fire last year over its use of AI in a $440,000 report for the Department of Employment and Workplace Relations (DEWR). The report was found to contain fake academic references and a fabricated quote from a key robo-debt case.
Correspondence released in November 2025 showed that Deloitte did not initially tell DEWR that generative AI was behind the errors, and later had to retract a claim that it had done so, HRD previously reported.
DEWR sought a refund of $97,587.11, citing the problems with the final report and Deloitte's acknowledgement that it had not followed its internal policy on telling clients about its use of AI.
