KPMG implements job cuts and pay freeze for deal advisory staff

KPMG Layoffs 2023: KPMG is set to implement job cuts in the UK and freeze pay for its deal advisory staff due to a subdued deals market and challenging economic conditions. The cuts in the deal advisory team are expected to affect around 110 individuals, nearly 7% of the UK deals division's approximately 1,700-strong workforce.

KPMG Job Cuts

Earlier, KPMG had announced targeted job cuts affecting 2.3% of its UK consultants (125 positions). The firm employs about 17,000 people across its audit, consulting, tax, and deals practices, and these reductions were considered a last resort following efforts to reallocate staff to busier divisions.

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Furthermore, deal advisory teams at KPMG will not receive pay raises this year, a departure from the usual practice of providing annual salary increases. Additionally, employees had been previously informed that this year's bonus pool would be smaller compared to the previous year.

Escalating costs and a lack of deal activity have created challenges for major advisory firms. Deloitte is cutting 800 jobs in the UK, and EY is reducing 150 positions in its financial services consulting sector. In the United States, the Big Four firms have conducted even larger staff reduction initiatives, impacting several thousand employees.

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KPMG noted, "A challenging economic environment has softened several markets, including the deals market, impacting demand in certain areas. As a result, we have put forward proposals to reduce headcount in select areas. Our priority is to support our people throughout this consultation."

It's worth mentioning that KPMG was recently fined a record £21 million and directed to pay £5.3 million in costs for failures in its auditing of the government outsourcer and construction group Carillion, which collapsed in 2018.