Deloitte is set to cut around 170 jobs in Australia as the professional services firm shifts its focus towards outsourcing and managed services, according to a report by the Australian Financial Review (AFR).
The planned redundancies account for around 2% of Deloitte Australia's non-partner workforce.
Employees were informed of the cuts this week, which are expected to affect roles across the organisation amid sustained changes in client demand.
A Deloitte spokesperson said, “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 job cuts come as Deloitte expands its outsourcing business, with plans to recruit more than 500 employees across technology, data, cybersecurity, taxation and legal services.
The division manages back-office functions, including finance, using employees in Australia and lower-cost delivery hubs in India.
According to the AFR, Deloitte aims to triple the size of the division and generate $1 billion in revenue by 2030, signalling a strategic shift towards managed services and recurring revenue streams.
Big Four firms expand outsourcing operations
Deloitte's restructuring comes as professional services firms increasingly look to outsourcing and managed services for growth amid changing client requirements and pressure on traditional consulting businesses.
PwC Australia is targeting at least $500 million in outsourcing revenue by 2030, while EY Australia has said it operates an outsourcing business generating $400 million annually.
Deloitte Australia reported revenue of $2.55 billion in 2025-26. Growth in its tax, legal and technology businesses offset declines in audit and deals, according to the AFR.
The broader advisory market has also faced challenges linked to high-profile ethical controversies involving major accounting firms and the growing impact of artificial intelligence on consulting services.
Previous scrutiny over AI-generated report
Deloitte has also faced scrutiny over a report prepared for Australia's Department of Employment and Workplace Relations (DEWR).
The report, commissioned for $440,000, contained fabricated academic references and a fabricated quote linked to the robodebt case.
Correspondence released in November 2025 indicated that Deloitte initially did not disclose that generative AI had contributed to the errors.
The firm later retracted its claim that it had informed the department about the technology's use.
DEWR subsequently sought a refund of $97,587.11, citing problems with the report and Deloitte's failure to follow its internal AI disclosure policy.
The latest workforce changes underline the pressures facing large professional services firms as they reassess staffing needs, respond to changing client demand and invest in outsourcing and technology-led services.