KPMG Announces Plan to Reduce 2,000 Jobs in the US

KPMG, one of the leading auditors globally, has announced plans to reduce its US workforce by around 5% due to a slowdown in demand for its consulting services. The firm’s US CEO, Paul Knopp, addressed the issue by stating that the job cuts are necessary to align their workforce with declining demand in the face of global economic uncertainty. He emphasized that although they continue to secure new projects, the overall economic climate is impacting their business, much like the rest of the industry.

Approximately 1,950 employees will be affected by the decision, based on KPMG’s US workforce of 39,000, as reported by the Financial Times. This move comes amidst a wider trend among consulting firms, with deal-making activity slowing down, inflation soaring, and clients canceling projects and demanding lower fees due to economic uncertainty.

The layoffs will span across KPMG’s American operations, impacting all areas such as advisory, audit, and tax practices. The reduction is planned to take place by the end of the financial year in September, marking the second round of job cuts for KPMG this year. Previously, the firm announced its intention to cut almost 700 roles in its US advisory business, representing around 2% of the staff in the country.

The situation is further compounded by a lower-than-expected voluntary attrition rate among US employees at KPMG. Mr. Knopp, who also serves on the company’s global board, highlighted this additional challenge. It is worth noting that other US consulting firms have already made significant job cuts in response to weaker demand.

EY, another major auditing firm, recently announced plans to lay off 3,000 employees in the US after an unsuccessful attempt to separate its consulting and accountancy divisions. Additionally, Deloitte is reportedly considering laying off approximately 1,200 members of its American workforce.