“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,” said a spokesperson for KPMG UK.
This statement comes as KPMG UK has warned nearly 600 audit staff that their roles are at risk. The firm is considering layoffs that could affect up to 440 employees following a consultation process.
The proposed cuts would represent approximately 6 percent of the audit division’s total workforce of 7,100. The layoffs are primarily focused on assistant managers who are qualified accountants, highlighting a significant shift in the firm’s operational strategy.
In addition to the audit staff, KPMG plans to eliminate 120 roles across its advisory arm, further indicating a trend of workforce reduction within the company.
KPMG is not alone in this move; the broader consulting industry has been quietly pulling back after years of rapid hiring. In fact, KPMG made the steepest cuts in 2023 compared to its competitors Deloitte, EY, and PwC.
“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 challenging time.
As KPMG navigates these changes, the exact timeline for the consultation process remains unclear. Details remain unconfirmed.
The firm employs thousands of people across various divisions, and these layoffs mark a significant moment in the ongoing evolution of the auditing and consulting landscape in the UK.
With the economic environment continuing to shift, KPMG’s actions may set a precedent for other firms in the industry as they reassess their workforce needs.
