“Current market conditions mean our attrition rates are very low within certain parts of our audit population, which is why we are proposing to right-size those areas,” stated a KPMG UK spokesperson, highlighting the company’s rationale behind the impending layoffs.
KPMG UK has warned nearly 600 audit staff that their roles are at risk as the firm prepares for significant job cuts. Up to 440 employees could leave following a consultation process that aims to address the current market dynamics.
The proposed layoffs would affect roughly 6 percent of the audit division’s workforce, which totals around 7,100 employees. The cuts are primarily focused on assistant managers who are qualified accountants, indicating a targeted approach to restructuring.
In addition to the audit staff, KPMG is set to eliminate 120 roles across its advisory arm, further underscoring the firm’s commitment to reducing its workforce amid challenging market conditions.
This move follows a trend within the broader consulting industry, which has been quietly pulling back after years of rapid hiring. KPMG made the steepest cuts in 2023 compared to its competitors Deloitte, EY, and PwC.
As the consulting landscape shifts, KPMG’s spokesperson emphasized, “This isn’t a decision we take lightly, and we will support our people throughout this consultation.” The firm is expected to provide assistance to affected employees during this challenging transition.
Details remain unconfirmed regarding the exact timeline for the consultation process, leaving many employees in uncertainty as they await further information.
The layoffs signal a significant shift in KPMG’s operational strategy, reflecting the pressures faced by the auditing industry in the current economic climate.
As KPMG navigates these changes, the impact on its workforce and the broader implications for the consulting sector will be closely monitored in the coming weeks.
