Professional services in Australia continue to register layoffs
As the COVID-19 pandemic continues to adversely impact businesses across Australia, Deloitte is slashing 700 positions from its 10,000-strong workforce in the country.
In making the announcement, Richard Deutsch, CEO of Deloitte Australia, insisted that the company had made all efforts to preserve as many jobs as possible during the COVID-19 crisis, while attempting to protect long-term sustainability.
He added, “Unfortunately, the last quarter of our 2020 financial year has seen a substantial drop in revenue and operating profit. We expect this trend to extend into at least the first quarter of our new financial year.”
Deloitte’s announcement came on the heels of similar moves by major accounting and consulting firms operating in Australia.
PwC is cutting 400 staff from its 8000-strong workforce, mainly from the consultancy and financial advisory division, while KMPG released 200 staff in April and in May, introduced a 20% pay reduction for staff that will last for four months.
Across all industries, the outlook remains pessimistic, with the International Monetary Fund (IMF) warning that Australia’s economy will be one of the worst-hit economies in Asia.
In the wake of the COVID-19 pandemic, Australia’s economy is predicted to shrink by 6.7% in 2020, while unemployment is expected to hover around the 7.6% mark as the worst recession since the Great Depression looms.