The Big Four accounting and consulting firms—Deloitte, EY, KPMG, and PwC—continue to dominate their industry despite facing recent challenges. Each firm has adapted differently in response to these changing times. This analysis delves into the current state of these giants as they navigate slowing service demand and implement strategic adjustments.
Deloitte stands as the largest among these firms, both in revenue and workforce. Founded in the UK in 1845 and expanding to the US by 1890, Deloitte has a wide-reaching global presence with over 700 offices in approximately 150 countries. Recently, the firm announced a significant restructuring aimed at streamlining operations across four core categories: audit and assurance, tax and legal strategy, risk and transactions, and technology transformation. Despite a 3.1% increase in global revenue to $67.2 billion in 2024, this growth was a marked slowdown from the previous year’s 14.9%. The focus now lies in modernizing operations, with Deloitte investing $3 billion into artificial intelligence by 2030. Partner payouts saw a decrease, reflecting the caution with which the firm approaches the future.
EY, formed from a series of mergers and now officially branded as EY since 2013, is renowned for its consultancy and assurance services. Despite a 3.9% increase in revenue to $51.2 billion in the past year, this was its weakest performance since 2010. EY faced substantial challenges in 2024, including a $11.7 million fine imposed by UK authorities for auditing failures, leading to cost-cutting measures including reduced partner payouts and staff layoffs. However, EY remains innovative, launching EY.ai, which encompasses next-generation AI capabilities, and offers a conversational AI assistant, EYQ, to enhance client service across professional domains.
PwC, frequently heralded as the most prestigious of the group, achieved new revenue heights in 2024, reaching $55.4 billion, despite growth slowing from the previous year’s pace. The firm is recognized for its robust audit client base, and its global workforce stands at over 370,000. Following internal evaluations, PwC has initiated job cuts and reduced partner pay, aiming to navigate a series of high-profile scandals in the Asia-Pacific region. Investing $1.5 billion into AI, PwC is expanding its technological reach with innovations such as a tax AI assistant, underscoring its commitment to maintaining a competitive edge.
KPMG, the smallest of the Big Four by revenue and staff numbers, reported revenues of $38.4 billion in 2024, marking a modest 5% increase from 2023. Headquartered in Amsterdam, KPMG is investing in specialist roles, particularly in ESG, tax, and technology sectors, despite its lagging position. The firm, striving for a balanced workplace culture, has made significant staff reductions amidst scrutiny over its auditing performance, including a record $26 million fine in the UK. Nevertheless, KPMG continues to focus on diversity, aiming for greater female representation in leadership by 2025.
As global economic conditions evolve, the Big Four firms—Deloitte, EY, KPMG, and PwC—are in a state of recalibration, implementing strategies to stay competitive. Each firm faces unique challenges and opportunities, highlighting the dynamic nature of the global accounting and consulting sector. These shifts underline the critical need for agility and innovation as they strive for sustainable growth.
Source: Businessinsider
