KPMG is laying off hundreds of employees in its US Advisory division, as part of a restructuring effort driven by shifting demand across consulting services. According to a report by The Wall Street Journal, the company has cut approximately 4% of its advisory workforce in the United States, affecting around 400 employees out of a team of more than 10,000. The layoffs primarily impact consultants working in regulatory risk advisory, customer operations, and financial services, while partners are not affected.
Company Statement on Strategic Realignment
In a statement confirming the layoffs, KPMG told The Wall Street Journal: “These actions focus on a strategic realignment to ensure that our people’s skills and capabilities are aligned with future demand. We will continue to support our people in upskilling for the future, while evaluating the size, shape, and skills of our workforce to best serve the market.”
Reasons Behind the Layoffs
The move comes as KPMG faces slower demand in certain advisory segments, particularly those linked to regulatory and compliance services. The company has also been dealing with lower-than-expected voluntary attrition following aggressive hiring during the pandemic. While some advisory segments have seen reduced demand, KPMG noted that other areas of its business continue to expand, including services related to transactions, strategy, and artificial intelligence. These areas are becoming a larger focus as companies adapt to changes in technology adoption and deal activity.
Broader Workforce Changes at KPMG
The layoffs in advisory follow additional workforce changes within KPMG. The company has also informed employees about planned cuts in its US audit business, where around 10% of audit partners are expected to exit. This includes roughly 100 partners, some of whom opted for early retirement.
Industry Trends Affecting Advisory Divisions
Industry trends suggest that advisory divisions across large accounting firms have been under pressure due to slower revenue growth in certain consulting areas. Changes in the regulatory environment have also affected demand. Reports indicate that reduced regulatory pressure has led some financial services clients to scale back their compliance and risk consulting engagements. As a result, companies like KPMG are adjusting their workforce structure to better align with evolving market needs and service demand.
