KPMG has initiated job cuts in its US advisory division, affecting around 4 per cent of the workforce. The move comes as demand softens in specific consulting areas, particularly regulatory and financial services advisory.
The layoffs impact roughly 400 employees out of a team of over 10,000 in the US advisory business. The reductions are largely concentrated in roles linked to regulatory risk, customer operations, and financial services consulting. A significant portion of those affected were in lower performance brackets, while senior leadership, including partners, remains untouched.
The firm has been navigating a mismatch between hiring and current demand. During the pandemic, advisory teams expanded rapidly to meet rising client needs. However, voluntary attrition has since slowed, leaving the organisation with a larger workforce than required in some areas.
Despite the cuts, KPMG has indicated that several segments within advisory continue to grow. These include services related to transactions, strategy, and artificial intelligence. The restructuring is aimed at aligning workforce capabilities with these emerging demand areas.
The firm is also encouraging employees to build new skills that match evolving market requirements. Alongside advisory, changes are underway in the audit business as well. KPMG has already moved to reduce its US audit partner pool, with around 100 partners expected to exit, including through early retirement.
The broader consulting industry has seen similar adjustments, especially in advisory segments where growth has slowed. KPMG’s latest actions reflect a shift toward prioritising high-growth and future-focused service lines while managing costs and workforce structure.
