“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, shedding light on the firm’s recent announcement regarding potential layoffs.
The firm has warned nearly 600 audit staff that their positions are at risk, with up to 440 employees expected to leave following a consultation process. This move, which would affect roughly 6 percent of the division’s 7,100-strong workforce, primarily targets assistant managers who are qualified accountants.
KPMG’s decision to initiate this round of redundancies comes as the broader consulting industry has been quietly pulling back after years of rapid hiring. The firm is set to fire more than 500 staff, a significant blow to the auditing sector, which has already seen substantial cuts in recent years.
In addition to the audit staff, 120 roles across the advisory arm are also slated for elimination. This latest round of layoffs follows a trend where KPMG has made the steepest cuts in 2023 compared to its competitors Deloitte, EY, and PwC.
The spokesperson emphasized, “This isn’t a decision we take lightly, and we will support our people throughout this consultation.” This statement underscores the difficult nature of the decision as the firm navigates the complexities of the current economic landscape.
Details remain unconfirmed regarding the exact timeline for the consultation process, leaving many employees in a state of uncertainty as they await further information.
As KPMG UK prepares for these layoffs, the impact on the remaining workforce and the future of the firm’s operations in the UK remains to be seen. The consulting giant employs thousands across various sectors, and any significant changes could reverberate throughout the industry.
With the auditing landscape shifting and firms reassessing their staffing needs, KPMG’s actions may signal a broader trend within the consulting sector as it adapts to new market realities.
