“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 spokesperson for KPMG UK.
This announcement comes as KPMG UK has warned nearly 600 audit staff that their roles are at risk. The firm is considering cutting up to 440 positions following a consultation process, which would represent approximately 6 percent of the audit division’s workforce of 7,100 employees.
The layoffs primarily target assistant managers who are qualified accountants, a move that underscores the ongoing challenges within the auditing sector. KPMG is not alone in this trend; the broader consulting industry has been quietly pulling back after years of rapid hiring.
In addition to the audit cuts, KPMG is also set to eliminate 120 roles within its advisory arm, further indicating a significant restructuring effort aimed at adapting to current market demands.
“This isn’t a decision we take lightly, and we will support our people throughout this consultation,” the spokesperson added, emphasizing the firm’s commitment to its employees during this difficult transition.
These layoffs mark a continuation of KPMG’s recent trend of workforce reductions, as the firm made the steepest cuts in 2023 compared to its competitors Deloitte, EY, and PwC.
As KPMG navigates these changes, the exact timeline for the consultation process remains unclear. Details remain unconfirmed, leaving many employees in a state of uncertainty about their futures.
The impact of these layoffs could resonate beyond KPMG, potentially influencing the broader auditing and consulting landscape in the UK.
With thousands of employees affected, the firm’s restructuring efforts may signal a shift in how audit services are delivered in the current economic climate.
As the situation develops, stakeholders will be closely monitoring KPMG’s next steps and the implications for the industry as a whole.
