London, May 6, 2026, 12:14 (BST)
KPMG’s efforts to trim costs are drawing fire from its UK workforce, as frustration mounts over the handling of a current redundancy process. According to City A.M. on Wednesday, employees affected by the UK consultation have criticized what they describe as inadequate communication from management. A KPMG spokesperson, for their part, maintained that the firm “continues to support our people throughout the consultations.” City AM
Timing is key here. KPMG’s U.S. unit had already slashed roughly 4% of its advisory staff, trimmed its audit partner roster, and exited federal audit contracts—making what could have been isolated payroll shifts into a larger experiment in how the firm handles staffing in a post-pandemic world. The UK complaints landed right as these changes were unfolding.
KPMG UK was already moving to eliminate more than 500 jobs. That includes roughly 440 audit assistant manager positions, plus another 120 in its advisory, or consulting, unit. The company pointed to lower-than-usual staff turnover—attrition, in their words—and present market conditions as reasons for the audit cuts.
This is the squeeze in action. KPMG’s UK-Swiss group posted revenue of £3.6 billion for the year ended Sept. 30, 2025, and profit before tax climbed 14% to £576 million. But advisory revenue slipped 3%, while audit managed a 5% rise. Jon Holt, group chief executive and UK senior partner, called the outlook “challenging” and pointed to investments in technology to help clients “transform with AI.” KPMG
KPMG let go of roughly 400 advisory consultants in the U.S., Business Insider reported, affecting jobs in regulatory risk, customer operations, and financial services. Tim Walsh, who heads KPMG U.S. as chair and CEO, had earlier emphasized to the publication the importance of adopting AI tools, calling them “critical to your success in the future.” Business Insider
KPMG plans to wind down its U.S. federal government audit practice, confirming to Reuters that audit specialists will be reassigned over several years. This comes after the Financial Times revealed that over 450 U.S. employees are being shifted due to KPMG losing a Pentagon contract worth $60 million annually.
KPMG told staff last week about another 400 advisory layoffs, according to Bloomberg Tax, marking the firm’s second round of U.S. cuts in just a week. Demand for regulatory compliance has slipped and not many employees are leaving on their own, prompting the move. KPMG said it’s aiming to put more resources into audit, advisory, and tax areas that are still growing, noting, “Disruption creates significant opportunities.” Bloomberg Tax
KPMG isn’t alone here. Job cuts and softer consulting demand have hit PwC, EY, and Deloitte in the UK too. According to James Ransome, who leads consulting at Patrick Morgan, the sector is up against a “demand slowdown” as well as “structural pressure” from fee compression, AI, and evolving pricing models, he told City A.M. City AM
KPMG International posted $39.8 billion in revenue for the year ended Sept. 30, 2025, as the firm’s global tally edged higher. Advisory revenue rose 2.9%, audit climbed 6.0%, and tax and legal jumped 7.5%. Global headcount increased by 1.8% to 276,030.
The risk is obvious: while cuts might shore up margins quickly, they won’t necessarily restore trust as fast. Should clients continue to pare back external consulting budgets, KPMG might feel the squeeze in its more sluggish advisory segments. And if interest in AI, cyber, and managed services ramps up, the firm could find itself scrambling for hard-to-find talent—while also having to persuade those still on board that there’s a plan worth sticking around for.
KPMG, for the moment, is juggling two moves: it’s trimming back in softer areas and reallocating staff and resources into faster-growing lines of business. But as the staff complaints suggest, the real challenge could be pulling this off without making the firm itself feel less secure to those on the inside.
