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KPMG UK flags up to 440 job cuts in audit division

Layoffs signal mounting pressure across consulting and accounting firms

KPMG

Big four accounting firm KPMG UK flags up to 440 job cuts in audit division

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  • KPMG UK has warned nearly 600 audit staff their roles are at risk.
  • Up to 440 employees could leave following consultation.
  • Consulting firms are cutting jobs as growth slows and AI reshapes work.

KPMG’s UK business has warned hundreds of employees in its audit division that their roles could be cut, in what appears to be another sign of strain across the consulting sector.

According to a report by Bloomberg, nearly 600 staff have been told their jobs are at risk, with as many as 440 expected to exit the business if the proposed redundancy process goes ahead. The move would affect roughly 6 per cent of the division’s 7,100-strong workforce.


The cuts are understood to be focused largely on assistant managers who are qualified accountants, reportedly said by a person familiar with the matter, as quoted in a news report. Staff have been informed through an internal memo that outcomes will depend on a consultation process.

A spokesperson for KPMG UK reportedly said the firm is looking to “right size” parts of its audit business where attrition has been unusually low, as quoted in a news report. The company added that the decision had not been taken lightly.

A wider shake-up across consulting

KPMG is not alone. The broader consulting industry has been quietly pulling back after years of rapid hiring. Firms are now facing slower demand, tighter client budgets and rising pressure to cut costs.

McKinsey & Company has also been weighing job cuts, particularly in non-client-facing roles. Discussions within the firm suggest that around 10 per cent of those teams could be affected over the next 18 to 24 months, according to earlier reports.

At the same time, PwC has been sending a different kind of signal internally. Its chief executive Paul Griggs reportedly warned that senior staff who fail to adopt artificial intelligence tools may not have a future at the firm, as quoted in a news report. He suggested that those not prepared to be “AI-first” could be replaced.

The shift reflects a broader reality facing the sector. Consulting and accounting, long seen as stable white-collar careers, are increasingly exposed to automation. Tasks such as auditing, research and financial analysis are now being handled, at least in part, by AI tools.

For firms like KPMG, the current round of job cuts may be less about a sudden downturn and more about adjusting to a changing model of work — one where fewer people may be needed to do the same job.

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