KPMG to Implement Substantial Reduction in Auditing Division Workforce

KPMG UK Announces Potential Job Cuts in Audit Business

Key Figures:

• 600: Number of staff members in KPMG UK's audit business informed of potential job cuts
• 440: Expected number of job losses if the proposal goes ahead
• 7,100: Total number of employees in the division, with 6% impacted by the proposal

KPMG UK has notified nearly 600 staff members in its audit business that their jobs are at risk, subject to a redundancy consultation. The company expects around 440 people will leave the business if the proposal is approved. The job cuts are focused on assistant managers who are qualified accountants, making up a small portion of the division's 7,100 employees.

According to a memo seen by Bloomberg News, the decision is attributed to current market conditions, which have resulted in low attrition rates within certain parts of the audit population. The company aims to right-size those areas to better align with market demands. This move follows a trend in the consulting industry, where rivals have resorted to job cuts to rein in costs after years of expansion.

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Industry Trends:

• McKinsey & Co. has discussed plans to cut around 10% of its headcount, potentially amounting to several thousand job losses over 18-24 months. This move is part of the industry's efforts to adjust to changing market conditions and costs.