“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, shedding light on the challenging landscape the firm is navigating.
In a significant move, KPMG UK has warned nearly 600 audit staff that their roles are at risk, with up to 440 employees potentially set to leave following a consultation process. This decision represents about 6 percent of the audit division’s workforce, which totals approximately 7,100 employees.
The layoffs are primarily targeting assistant managers who are qualified accountants, reflecting a strategic shift in response to the broader consulting industry’s recent pullback after years of rapid hiring.
Additionally, the firm plans to cut 120 roles across its advisory arm, further indicating the extent of the restructuring efforts. KPMG, which employs thousands across the UK, has made the steepest cuts in 2023 compared to its competitors Deloitte, EY, and PwC.
As the consulting sector adjusts to new economic realities, KPMG’s spokesperson emphasized, “This isn’t a decision we take lightly, and we will support our people throughout this consultation.”
The exact timeline for the consultation process remains unclear, leaving many employees in a state of uncertainty as they await further details.
These layoffs come at a time when the auditing industry is facing increased scrutiny and pressure to adapt to changing market demands, prompting firms like KPMG to reassess their workforce needs.
As KPMG moves forward with these proposed changes, the focus will be on how the firm supports its affected employees and navigates the ongoing challenges in the consulting landscape.
