LONDON, March 30, 2026, 12:10 BST
KPMG’s UK audit division is bracing for potential layoffs, with a redundancy consultation that could put as many as 440 jobs on the line. Bloomberg noted that close to 600 audit staff received notice their positions might be cut. The proposal would trim about 6% from a business that currently employs around 7,100 people.
This shift is notable, hitting even the typically stable audit divisions of the Big Four. With a cooler hiring climate, voluntary departures have slowed, and softer consulting demand is pushing firms to scrutinize expenses. KPMG’s January numbers underline the story: audit sales up 5% in 2025, but advisory revenue slipped 3%.
KPMG UK, in a statement to Reuters, said the firm typically sees “a regular pattern of natural attrition” but noted that softer market conditions have dragged turnover lower than usual in some audit segments. That’s led KPMG to move ahead with “right sizing those areas.” The spokesperson declined to confirm the 440 jobs number. Reuters
Bloomberg singled out assistant managers with accounting credentials as those most at risk. Translation: layoffs target skilled auditors, not partners.
The squeeze isn’t limited to audit. According to reports from the Financial Times and Australian Financial Review, KPMG has also notified its advisory staff of around 120 job cuts, broadening the impact at a firm already feeling the pinch from weaker consulting and deals activity.
KPMG’s latest figures tell a slightly different story. In January, the firm published its first set of joint UK/Swiss annual results, reporting group revenue of 3.6 billion pounds ($4.8 billion)—a 2% uptick. Profit before tax climbed 14% to 576 million pounds. Back then, Jon Holt, who serves as group chief executive and UK senior partner, noted that “despite the difficult market” KPMG kept pouring money into technology, AI, and talent. KPMG
KPMG isn’t the only one trimming headcount. According to Reuters, PwC eyed about 600 UK layoffs in 2023 as employee turnover slowed and business growth lagged. Deloitte, for its part, slashed over 800 UK positions that year, reacting to more guarded client budgets.
UK jobs data presents a patchwork—far from disastrous. March’s labour-market report from Holt flagged the “strongest signs of improvement in three years.” REC chief Neil Carberry echoed that, saying “the worst of the hiring slowdown has passed,” though he cautioned that “a few bumpy months” may still be in the cards. KPMG
KPMG is pointing straight to technology as the engine behind its overhaul. The firm says AI has landed “in the hands of every auditor” thanks to its Clara audit platform, and advisory groups have rolled out AI agents as “digital teammates”—software designed to handle repetitive work and sharpen analysis. KPMG
That still leaves a major question mark. Should the consultation tweak the plan or if additional staff decide to exit on their own, the final number could drop below 440. Back in January, KPMG emphasized it was sticking to cost-cutting efforts, citing “ongoing headwinds” and persistently low attrition across the sector. That hints the squeeze could linger if demand doesn’t pick up. Reuters
KPMG’s message is a double one: the firm says it’s putting money into staff, training, and tech, but it’s also trimming its auditor ranks as business slows. The upcoming consultation should reveal just how deep those changes go.
