KPMG is preparing another round of layoffs, with around 200 roles set to be cut across its corporate services division as the professional services giant reshapes its operating model following the integration of its UK and Swiss businesses.
According to City AM, the proposed reductions will affect around 10 per cent of the firm's group corporate services workforce, spanning functions including HR, corporate affairs, marketing, technology and procurement.
The latest move marks another significant workforce reduction for KPMG, which has already cut more than 500 jobs earlier this year as market conditions continue to weigh on demand across parts of the professional services sector.
Corporate services become the latest focus
In a statement shared with City AM, a KPMG UK spokesperson said the proposed cuts form part of a broader effort to streamline operations following the firm's cross-border integration strategy.
"As we continue to integrate our UK and Swiss businesses to deliver on our group strategy and drive growth, we are looking at the shape of our operating model," the spokesperson said.
The firm added that it has launched proposals to reduce roles in its central services by 10 per cent to:
- Avoid duplication across the organisation
- Maximise investments in technology
- Expand offshore delivery capabilities
The spokesperson also said employees would be supported throughout the consultation process.
The integration between KPMG UK and KPMG Switzerland officially came into effect on 1 October 2024, following overwhelming approval from partners in both firms.
Fresh cuts follow earlier workforce reductions
The proposed layoffs add to an already significant restructuring programme at KPMG. Earlier this year, the firm eliminated more than 500 roles, including:
- 440 assistant manager positions within the audit business
- 120 roles across the advisory division
The audit reductions affected approximately 6 per cent of the division's 7,100 employees.
At the time, KPMG attributed the audit cuts to lower employee attrition in parts of the business, saying the firm needed to "right size" those teams. It also cited evolving market conditions when announcing reductions within its advisory practice.
Big Four firms continue to reduce headcount
The latest proposal comes as workforce reductions continue across the Big Four accounting firms.
According to City AM, competitor PwC is also preparing job cuts within its audit division, while Deloitte sought to reduce nearly 200 jobs in its audit business last month.
The developments reflect continued pressure on major professional services firms as they respond to softer demand in some business lines while investing more heavily in technology and operational efficiency.
Internal concerns emerge over communication
The latest proposals also follow reports of employee dissatisfaction after KPMG's previous restructuring.
In May, City AM reported internal frustration over how the earlier audit layoffs had been communicated. One employee described the situation as "mismanagement", saying staff received positive updates about business performance shortly before being informed of job reductions.
The comments highlighted concerns over transparency during a period of sustained organisational change.
Restructuring shows no sign of slowing
The proposed reduction in corporate services signals KPMG's restructuring programme is entering another phase.
While the firm frames the changes as part of its strategy to simplify operations, leverage technology and support long-term growth, the continued workforce reductions underscore the challenges facing professional services firms navigating slower market conditions and rising pressure to improve efficiency.
With PwC, Deloitte and now KPMG all pursuing workforce reductions, the latest round of layoffs suggests the Big Four's focus on cost discipline and organisational redesign is likely to remain firmly in place.