KPMG US to cut 2,000 jobs

28 June 2023 Consulting.us 2 min. read
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KPMG US in a Monday internal email announced it is laying off approximately 2,000 employees – or 5% of its 39,000-person workforce.

The second round of 2023 cuts will fall on all three of the firm’s audit, tax, and advisory service lines. A previous round of cuts (700 jobs) announced in February fell solely on the advisory division.

The firm notified those impacted by the cuts in audit, tax, and digital on Monday, while consulting and other process groups will be notified later in the summer. KPMG expects to complete the layoffs by the end of its financial year in September.

The internal email from CEO Paul Knopp cited “economic headwinds” and a historically low level of attrition. As a result, the firm faces a “significant mismatch” between the size of its workforce and demand for services.

KPMG US to cut 2,000 jobs

The other Big Four firms have been rolling out layoffs this year in response to sagging demand in certain areas, particularly transactions consulting, HR, and cybersecurity.

EY US announced a 5% slash following the scrapping of its global split plans, while Deloitte said it would cut 1.5% of its workforce.

According to a recent report from Source Global Research, the overall consulting market is projected to remain flat at 11% revenue growth in 2023. The report found three-quarters of professional services clients have cancelled at least some of their existing or prospective projects, while two-thirds have paused most existing project work.

Source’s research also found that more companies are questioning the value of their consulting spend, with clients now five times more likely to expect fee rates to decrease than before the Covid-19 pandemic.