KPMG plans to shed hundreds of roles in audit division – report

Core Insights - KPMG's UK audit practice is considering job cuts affecting nearly 600 employees, with a potential reduction of up to 440 positions following a formal redundancy consultation [1][2][3] - The proposed cuts represent about 6% of the audit division's workforce, which consists of approximately 7,100 employees [3] - The restructuring is part of a broader trend among professional services firms responding to slower demand and rising costs after a period of rapid hiring [3][4] Group 1 - KPMG UK has warned employees in its audit practice about potential job cuts, indicating that a formal redundancy consultation is underway [1] - The company aims to "right size" certain areas of its audit population due to low attrition rates, particularly affecting assistant manager roles held by qualified accountants [2] - Other major firms, such as McKinsey & Co. and EY, are also implementing workforce reductions in response to market conditions, with EY reducing its headcount by 8% [3][4] Group 2 - If the proposed cuts are fully implemented, they could occur gradually over 18 to 24 months, potentially affecting a few thousand positions across the industry [4] - The current market environment has led to several professional services firms reassessing their workforce needs, indicating a shift in hiring strategies [3][4]