KPMG UK has warned nearly 600 audit staff that their roles are at risk, with significant layoffs expected in the consulting industry.
“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 the firm prepares to potentially lay off nearly 600 audit staff, marking a significant shift in the company’s workforce strategy.
The proposed layoffs could see up to 440 employees leaving the firm following a consultation period. This represents roughly 6 percent of KPMG’s audit division, which employs a total of 7,100 people. The cuts are primarily aimed at assistant managers who are qualified accountants, indicating a targeted approach to workforce reduction.
In addition to the audit staff, KPMG is also set to eliminate 120 roles across its advisory arm. This decision reflects broader trends within the consulting industry, which has been quietly pulling back after years of rapid hiring.
KPMG’s decision to proceed with layoffs is not taken lightly. The spokesperson added, “This isn’t a decision we take lightly, and we will support our people throughout this consultation.” This commitment to support employees during the transition highlights the firm’s awareness of the impact such decisions have on its workforce.
The layoffs at KPMG come in the wake of steep cuts made by the firm in 2023, which were the most significant among its competitors, including Deloitte, EY, and PwC. As the consulting landscape evolves, KPMG’s actions may set a precedent for other firms facing similar market pressures.
Details remain unconfirmed regarding the exact timeline for the consultation process, leaving many employees in uncertainty about their future. As KPMG navigates these challenging market conditions, the implications of these layoffs will likely resonate throughout the industry.
