KPMG UK is set to reduce its audit workforce by nearly 600 positions, with up to 440 roles anticipated to be eliminated due to low attrition rates, reflecting wider cuts in the consulting sector similar to those at McKinsey.
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Affected staff were informed about the possibility of layoffs, pending a redundancy consultation process, according to an internal memo reviewed by Bloomberg News. The company anticipates that around 440 individuals could exit the organization if the proposal progresses after the consultation, as disclosed by one insider who chose to remain anonymous due to the confidential nature of the information.
“The current market environment has resulted in exceptionally low attrition rates in specific segments of our audit workforce, prompting us to consider adjustments in those areas,” commented a KPMG UK spokesperson. “This is not a decision we are making lightly.”
The layoffs mainly target assistant managers who are certified accountants, according to the source. The proposed cuts represent roughly 6% of the 7,100 employees in that division.
Several competitors of KPMG have initiated job reductions as the consulting industry seeks to cut costs following years of substantial growth. The leadership at McKinsey & Co. has deliberated with managers in non-client-facing areas about the necessity of reducing headcount by approximately 10% throughout their organization. This could translate to thousands of job cuts that McKinsey plans to implement over the next 18 to 24 months, as previously reported by Bloomberg.
