The sugar rush is over: The Big Four must wake up from their pandemic dream
The pandemic was the worst thing that could have happened to the Big Four giants and the overall consultancy market. At the time, these firms were flying high, flooded with inquiries from businesses needing help to navigate the ‘once-in-a-lifetime ‘ event, but this ‘sugar rush’ didn’t last forever, and it gave the industry a false hope of double-digit growth, writes Maria Ward-Brennan.
It may seem like a lifetime ago, but perfectly respectable single-digit revenue growth was once the norm for the UK’s Big Four giants as they gradually built out their advisory departments. However, when the country went into a standstill during the pandemic and businesses were brought to a halt, the chaos actually benefited the firms and saw them bulking up their consultancy arms.
It became something of a golden era for these giants. The financials highlighted this growth, with firms posting massive double-digit growth. The industry was giddy from its ‘sugar rush’. The workload was so high that the headcount also exploded, but spare a thought for those HR teams at the time; the onboarding would have been a full-time job in and of itself.
But like all moments of splurging, there comes a moment when the purse strings are pulled shut, and unfortunately for these firms it came at the same time the AI craze met a stagnant economy.
Since then, we’ve covered multiple reports of layoffs at the Big Four following a period where over-hiring collided with people not leaving, as job roles in the market are limited. These headlines aren’t going away, with the latest revelation being KPMG’s plan to cut 200 jobs from its advisory business.
But as the Big Four firms scramble to steady the ship, the sector may need to pull back from comparing itself to its ‘golden era’ and start measuring itself against pre-pandemic levels, and even against the wider British economy.
Slower growth, higher stakes
We are at the start of the financial results season for these giants. PwC UK was the first to reveal its results for the year ended 30 June 2026, showing 2 per cent growth in UK revenue; profit per partner (PEP) rose slightly, but group revenue slipped due to the Middle East conflict.
On Wednesday, Deloitte’s UK arm reported its revenue was up 2 per cent to £5.81bn as its advisory arms returned to growth.
Last week, Deloitte reported global revenues of $74.5bn (£56.37bn), a 3.8 per cent increase from the previous year. Its results were weighed down by its consulting department, which showed growth slowed to 2.5 per cent, down from 4.7 per cent.
We expect to see EY’s in late October, and KPMG’s in January.
But growth is still growth, and single-digit increases shouldn’t be considered a crisis, especially when British GDP has been sluggish.
Businesses will always need consultants, especially at a time when the crystal ball looks increasingly cloudy. But the phone won’t be picked up for its own sake; the advice needs to be valuable.
According to a recent Source report, the next generation of executives are pushing to reduce dependence on external consultants, as 26 per cent of C-suite executives said their companies are actively taking steps to reduce reliance on external advisors.
But as Catherine Anderson, director of delivery at Source, told City AM: “Regardless of [client] feelings about using consultants, [they are] necessary, and there are many reasons for that. Not least, consultants come with a different and wider perspective and new ideas, which is what clients really need.”
She said this is the moment when consultants need to bring innovation and fresh ideas to make “clients so reliant on consultants”.
The Source data also highlighted that global consulting market growth is projected to settle at 5–7 per cent per year over the coming years, down sharply from the rapid expansion seen during the Covid pandemic, but still growth nonetheless.
As stretched corporates seek external help, the insights, innovation, and skills firms offer will keep revenues up and prevent them from turning negative. But a dose of realism is needed to counter the sugar rush of recent years.
‘Beyond The Billable’ is a weekly column focused on the professional services industry.