Consultancy giant KPMG’s UK arm is preparing for a major workforce reduction, with hundreds of roles in its audit division potentially on the line. According to a report from Bloomberg, nearly 600 employees have been told their positions could be affected after the results of an internal consultation process come out. Employees were informed through an internal memo that layoffs are not yet final but remain a possibility depending on how the redundancy discussions unfold.
If the plan proceeds as anticipated, up to 440 employees could leave the firm, marking a notable contraction within one of the Big Four’s core business units, as per the report
The proposed cuts are largely focused on assistant managers who hold professional accounting qualifications. Sources familiar with the matter indicated in the report that this segment of the workforce has been specifically identified as part of the restructuring effort.
Overall, the potential layoffs would impact roughly 6 per cent of the audit division’s total headcount, which currently stands at around 7,100 employees, added the Bloomberg report.
KPMG has pointed to broader market dynamics as a key factor behind these expected layoffs. Addressing the situation, a company spokesperson said in the report, “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.”
The spokesperson stressed the seriousness of the decision, adding, “This isn’t a decision we take lightly.”
Consulting Sector Faces Broader Reset
KPMG is not alone when it comes to restructuring efforts; it is a wider trend across the consulting industry, where firms are scaling back after a period of rapid growth. Reports suggest that McKinsey & Co. has internally discussed potential layoffs that could affect non-client-facing roles, possibly impacting around 10 per cent of its workforce over the next two years.
Meanwhile, PricewaterhouseCoopers (PwC) is taking a different approach by pushing AI adoption. CEO Paul Griggs warned that employees who fail to embrace artificial intelligence risk being left behind. “I don’t think anyone gets a free pass here. Anyone,” he said, highlighting the urgency of adapting to new tools and workflows.
