KPMG to cut 2,000 jobs in US

Adam Mawardi
Mon, 26 June 2023

The latest reductions, announced internally on Monday, will affect all areas of KPMG’s American operation, including its advisory, audit and tax practices. - Reinhard Krause

Auditor KPMG is to cut around 5pc of US jobs as demand for its consulting services slows.

Paul Knopp, the “big four” auditor’s US chief executive, said the cuts are designed to address the “significant mismatch” between its US workforce and the reduced demand amid global economic uncertainty.

He wrote in a memo to staff: “While our pipeline of opportunities is strong and we continue to win in the marketplace, we are experiencing economic headwinds that are not unique to our business or firm.”

About 1,950 workers will be affected by the decision, based on the firm’s US workforce of 39,000 people, the Financial Times reported.

It comes as consulting firms deal with slowing deal-making activity, soaring inflation and global economic uncertainty, which has forced clients to cancel projects and push for lower fees.

The latest reductions, announced internally on Monday, will affect all areas of KPMG’s American operation, including its advisory, audit and tax practices.

The cull will take place between now and the end of the firm’s financial year in September.

It marks KPMG’s second round of layoffs this year, after it became the first big four auditor to announce job cuts earlier in February.

KPMG announced in February plans to slash nearly 700 roles in the firm’s US advisory business, which then represented around 2pc of staff in the country.

Adding to this pressure is the lower-than-expected decline in US workers choosing to leave the auditor voluntarily, according to Mr Knopp, who also serves on KPMG’s global board.

It comes after US consulting firms in recent months have slashed thousands of jobs amid weaker demand.

Auditor EY has announced plans to cut 3,000 US jobs following a failed attempt to separate its consulting and accountancy arms, while Deloitte reportedly plans to lay off around 1,200 members of its American workforce.