KPMG Layoffs: Consulting Firm Cuts Hundreds Of Audit Jobs Amid Low Turnover

KPMG Layoffs: Despite the recent layoffs, KPMG's audit division has grown, generating $3.7 billion in revenue in 2023. This highlights its critical role within the firm's broader services portfolio

KPMG Layoffs: Global revenue growth has slowed for Big Four firms such as Deloitte, Ernst & Young, and PwC

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One of the big four, KPMG, announced on Monday that it has cut approximately 330 positions from its US audit workforce, accounting for under 4 per cent of its nearly 9,000 audit employees. The decision was driven by historically low employee turnover, which has impacted staffing levels, according to a report from Bloomberg citing familiar sources.

The layoffs are part of KPMG's effort to align its workforce with current market demands. "The actions reflect our ongoing focus to align the size, shape and skills of our workforce to the market, while addressing continued low levels of attrition," the firm said in a statement, as per the Bloomberg report.

Despite the recent layoffs, KPMG's audit division has grown, generating $3.7 billion in revenue in 2023. This highlights its critical role within the firm's broader accounting, tax, and consulting services portfolio. The current round of cuts comes just a year after KPMG reduced its US workforce by 2,700 in response to slower demand for deals advisory services, a trend that impacted several Big Four firms worldwide, according to the report.

These staff adjustments come amid similar challenges faced by other firms in the Big Four. For instance, PwC LLP eliminated 1,800 positions across its US assurance, tax, and advisory services in September, as per the report.

Global revenue growth has slowed for Big Four firms such as Deloitte, Ernst & Young, and PwC, all of which reported weaker financial results earlier this fall. KPMG is expected to release its network-wide financial figures in December, states the report. 

Amid these changes, KPMG CEO Paul Knopp recently called for reform of CPA licensing standards, citing the profession’s shrinking talent pipeline. While Knopp noted that KPMG is not currently facing immediate recruitment challenges, he expressed concern about the long-term impact of a dwindling CPA workforce on corporate accounting teams and smaller firms.