KPMG to cut about 10% of its US audit partners after early retirement plan falls short

KPMG is cutting roughly 10 per cent of its audit partners in the United States, after a multi-year effort to encourage early retirements failed to deliver enough departures.

The reductions are expected to affect around 100 partners, with some leaving through previously agreed voluntary retirements and others included in the latest round of cuts.

Partner numbers reset to match business scale

KPMG said the move is aimed at aligning partner numbers more closely with the current size of its audit business, and is not linked to individual performance.

“This action is connected to a multiyear strategy to align the size, shape and skills of our team to the power of our audit platform to best serve our clients and protect the capital markets,” the firm said in a statement cited by The Wall Street Journal.

The company added that affected partners will receive financial packages along with support for job placement.

Cuts follow shortfall in voluntary exits

The decision follows a prolonged push to encourage senior partners to retire early, which did not result in sufficient attrition.

KPMG’s US audit practice includes around 1,400 partners and managing directors, based on its January audit-quality report. The current cuts apply to partners, with managing directors not included, the publication reported.

Audit business continues to expand

Despite the reductions, KPMG said its US audit business remains on a growth path.

Data from Ideagen Audit Analytics, cited in reports, shows the firm audits around 10 per cent of companies registered with the US Securities and Exchange Commission.

That places it behind competitors such as Deloitte, Ernst & Young and PricewaterhouseCoopers, which audit a larger share of listed companies, according to the same data.

Wider industry recalibration

The move comes amid a broader wave of workforce adjustments across professional services and technology firms, as companies balance cost discipline with long-term investments.

Large organisations including Meta Platforms and Microsoft have recently announced job cuts or workforce changes as they increase spending on artificial intelligence infrastructure.

KPMG’s decision highlights a shift towards tighter control over senior headcount, even in areas where demand remains steady.

The cuts suggest firms are becoming more deliberate in aligning leadership structures with business needs, as they navigate changing client demands and rising investment requirements across the sector.