KPMG UK has revealed plans to eliminate nearly 600 positions across its operations, with the accounting giant's audit division bearing the brunt of the workforce reduction.
Staff learned of the proposed cuts during a hastily arranged call on Friday morning, according to individuals with knowledge of the matter.
The firm's audit business faces the loss of approximately 440 assistant manager roles, while a separate announcement informed advisory staff that around 120 positions would be axed.
Those affected are primarily qualified accountants working at assistant manager level, representing a significant reduction in the firm's professional workforce.
The firm attributed the audit redundancies to unusually low staff turnover in current market conditions.
"Current market conditions mean our attrition rates are very low within certain parts of our audit population, which is why we are proposing to right-size those areas," KPMG stated.
"This isn't a decision we take lightly, and we will support our people throughout this consultation."
The proposed cuts would affect roughly six per cent of the audit division's 7,100-strong workforce.
The firm attributed the audit redundancies to unusually low staff turnover in current market conditions
| GETTYEmployees identified as at risk have been notified they may face redundancy, with a formal consultation process set to continue until mid-May before final decisions are made.
Within the advisory arm, the enterprise risk department faces the heaviest losses, with roles advising companies on governance, risk and compliance most affected. Some back-office workers and economics team members will also lose their positions.
Senior leadership reportedly pushed for the reductions amid concerns about hitting budget targets during the prolonged market downturn.
"We've had a large bench for about six months and not much in the pipeline," one person familiar with the situation explained, referring to consultants without project assignments. "We have also lost some fairly regular income projects."
The advisory changes would impact just over two per cent of that business unit.
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PwC eliminated 175 junior auditors last year, while McKinsey has discussed reducing headcount by approximately 10 per cent across non-client-facing departments.
KPMG's advisory revenues contracted three per cent in the previous year, mirroring declines at EY, PwC and Deloitte's consulting operations.
Despite the challenging conditions, KPMG's UK partners earned more than their counterparts at both PwC and EY last year for the first time in over a decade, as the Big Four firm lifted profitability following a period of weaker performance.
The company said partners received an average of £880,000 for the 12 months to September 2025, marking an 11 per cent increase on the previous year.
Those with health conditions that may reduce life expectancy could qualify for enhanced annuities offering higher rates | GETTYThis puts KPMG ahead of PwC, where partners earned £865,000, and EY at £787,000 in their latest financial years, although it still trails Deloitte, where average partner pay reached £1.05million.
It is the first time since 2014 that KPMG’s UK partner pay has exceeded that of two other Big Four firms.
The firm also increased its bonus pool for more than 18,000 employees across the UK and Switzerland by 18 per cent, although this was slightly below the 20 per cent rise awarded to UK staff the previous year.
The firm reported a 14 per cent rise in pre-tax profits to £576million.