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giants in trouble: accounting firms face new challenges


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deloitte's 2024 fiscal year performance report shows that global revenue growth is slow and demand for consulting business has dropped significantly, marking a trough for the industry. although deloitte said it would continue to invest in emerging areas, the overall slowdown in industry growth has brought greater challenges to companies.

in recent years, consulting business has been a source of profit for deloitte, accounting for more than 40% of the company's total revenue. as the economic environment changes, the demand for consulting business has begun to decline. the severe economic situation in the united states and asia has led to a sharp decline in the demand for consulting business. the strongest revenue growth in europe, the middle east and africa reached 8.5%, which reflects the economic development potential of these regions. however, the growth rate of americas, one of deloitte's largest markets, plummeted to 1.4%, compared with 17.5% in the previous fiscal year.

deloitte is actively responding to industry changes and restructuring its global business to cut costs and reduce organizational complexity. the new business structure will be reduced from five departments to four: audit and assurance; strategy, risk and transactions; technology and transformation; tax and legal. this means that companies need to rethink their business models and find more efficient ways to remain competitive in the future.

in addition to deloitte, partners of the other three major accounting firms (ernst & young, kpmg and pricewaterhousecoopers) privately stated that they also expect growth to slow down. the future of these giants depends on how they adapt to the new market environment and find new directions for development.