KPMG slashes 1,400 jobs in United States

21 October 2020 2 min. read
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KPMG US announced in late September that it is laying off 1,400 – or approximately 4% – of its 35,000-person workforce.

The Big Four firm said that the layoffs will affect 779 people in its audit, tax, and advisory service lines. The bulk of those cuts are falling on advisory professionals (396 people), followed by tax (194) and audit (189).

KPMG is also cutting 621 employees in non-client facing business process groups. The company further announced that it is cutting pay for 125 tax professionals.

“While our business fundamentals are strong and we continue to be optimistic about the future, we must also be realistic about the uncertainty that exists in the marketplace,” a KPMG spokesperson told Business Insider. “For that reason, we are taking prudent action to better align our resources with client needs and demand.”

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The layoffs arrived just prior to the beginning of the company’s 2021 fiscal year.

A KPMG employee told new site Going Concern that the firm was providing severance of four weeks’ pay or more (depending on tenure), PTO pay outs, and placement services.

The firm also recently announced the promotion of 119 team members to partner.

The Covid-19 pandemic has depressed demand for consulting services as corporate clients tighten their budgets for advisory support amid a global downturn. Firms have aimed to limit the fallout through pay cuts and furloughs, but permanent layoffs have become a distinct reality.

Deloitte US earlier this year announced the elimination of 5,000 jobs (5% of its 106,000 employees), while Accenture announced it was slashing 25,000 jobs (5% of 500,000 employees).