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Biz News Korea(Eng)
Deloitte Anjin to cut executive-level consultants by about 30%
- Collected
- 2017.07.21
- Distributed
- 2017.07.26
- Source
- Go Direct
The Korean unit of New York-based Deloitte recently replaced its chief executive and embarked on massive restructuring. Its human resources manager is said to have personally notified 40 to 50 partners about the dismissal, said an accounting industry source who asked to be unnamed on Thursday.
There were 210 partners working at Deloitte Anjin as of the end of June, but the team would be streamlined to less than 140 partners after the downsizing. Around 10 to 20 partners already had left the firm in the past one month, sources said.
The company’s restructuring has come after it was accused of window dressing DSME’s audit reports last year. It is currently under temporary business suspension and is banned from signing new contracts with listed companies and unlisted financial firms for a year.
Deloitte Anjin that had been the country’s second largest accounting firm based on sales since 2010 has fallen behind Samjong KPMG following the incident. It raked in 309.0 billion won ($275 million) in sales for fiscal 2016 whereas Samjong KPMG earned 319.0 billion won.
The corporate restructuring program is led by Hong Jong-sung, managing partner of Deloitte Anjin, with strong support from new CEO Lee Jung-hee, according to sources. The firm has already replaced the directors of its six departments including audit and financial consulting.
By Kim Dae-gi and Chun Gyung-woon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]