“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.

The firm has warned nearly 600 audit staff that their roles are at risk, with up to 440 employees potentially leaving the company after a consultation period. This move is part of a broader trend affecting the auditing industry, which has seen significant cuts in recent months.

The layoffs would impact approximately 6 percent of the audit division’s workforce, which totals around 7,100 employees. The cuts are primarily focused on assistant managers who are qualified accountants.

In addition to the audit staff reductions, KPMG is also set to eliminate 120 roles across its advisory arm, further indicating the firm’s efforts to streamline operations amid changing market dynamics.

KPMG’s decision comes as the consulting industry has been quietly retracting after years of rapid hiring. The firm has already made the steepest cuts in 2023 compared to its competitors, including Deloitte, EY, and PwC.

“This isn’t a decision we take lightly, and we will support our people throughout this consultation,” the spokesperson added, emphasizing the firm’s commitment to its employees during this challenging time.

Details remain unconfirmed regarding the exact timeline for the consultation process. As KPMG navigates these changes, the impact on its workforce and the broader implications for the auditing sector remain to be seen.

The layoffs reflect a significant shift in the industry, as firms adjust to new economic realities and changing client demands. KPMG’s actions may set a precedent for other companies in the sector as they evaluate their staffing needs moving forward.

As the situation develops, stakeholders will be closely monitoring KPMG’s next steps and the outcomes of the consultation process.

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