KPMG UK has warned nearly 600 employees in its audit division that their jobs could be at risk. The firm has started a redundancy consultation process, meaning staff have been told they may be laid off depending on the outcome. If the plan goes ahead, KPMG expects around 440 people will ultimately leave.
The company is reporte4dly citing low staff turnover and changing market conditions for the move.
The cuts are expected to mainly affect assistant managers with professional accounting qualifications. This group makes up a significant portion of the audit workforce. Overall, the move could impact about six per cent of the division, which currently employs around 7,100 people.
In a statement, KPMG UK explained that the decision is linked to unusually low attrition rates in some parts of its audit practice. Normally, firms expect a certain level of staff turnover, but with fewer people leaving, the company says it now has more employees than needed in certain areas. “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,” a spokesperson said, adding that the decision was not taken lightly.
The development reflects a wider trend in the consulting and professional services industry. After years of rapid hiring and expansion, many firms are now tightening costs and adjusting their workforce to match slower demand.
