KPMG UK has informed nearly 600 employees in its audit division that their roles are at risk as part of a proposed restructuring exercise.
According to sources familiar with the matter, affected employees have been notified through an internal memo that their positions may be made redundant, subject to a formal consultation process. If the proposal moves forward, the firm could see up to 440 employees exiting the business.
Reason Behind the Move
A spokesperson for KPMG stated that the decision is driven by changing market conditions and unusually low attrition levels within certain segments of its audit workforce.
"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. This isn't a decision we take lightly," the spokesperson said.
The firm is aiming to rebalance its workforce to better align with current demand, especially as hiring slowdowns and reduced voluntary exits have led to workforce imbalances.
Who Will Be Affected?
The proposed job cuts are expected to primarily impact assistant managers, particularly those who are qualified accountants. This group forms a significant portion of the audit workforce and has been identified as an area where staffing levels exceed current business needs.
Overall, the proposed layoffs could affect around 6% of KPMG UK’s 7,100 audit employees, making it one of the more notable workforce adjustments in the firm's recent history.
Industry-Wide Trend
KPMG is not alone in taking such measures. The broader consulting and professional services industry is undergoing a phase of cost control after years of rapid expansion.
For instance, McKinsey & Company has also reportedly been considering workforce reductions. Its leadership has discussed plans to cut approximately 10% of staff in non-client-facing roles, potentially impacting thousands of employees over the next 18 to 24 months.
This shift reflects a wider trend where firms are adjusting to slower growth, cautious client spending and evolving demand patterns.
What Lies Ahead?
While the consultation process is still ongoing, the final number of job cuts at KPMG UK will depend on internal discussions and feedback from affected employees. The move highlights the growing pressure on consulting firms to maintain efficiency while navigating uncertain economic conditions.
As the sector recalibrates, more firms may follow suit, making workforce optimization a defining theme for the industry in the coming months.
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