KPMG cuts hundreds of audit jobs to tackle low turnover, shifting market demand | Company Business News

KPMG LLP announced on Monday that it has reduced its U.S. audit workforce by about 330 positions, representing just under 4% of its nearly 9,000 audit employees. The decision addresses historically low employee turnover, a factor affecting staffing levels, according to a source close to the firm’s strategy, as per a Bloomberg report.

Livemint could not independently verify this news development.

The layoffs follow KPMG’s shift to align its workforce with current market demands. “The actions reflect our ongoing focus to align the size, shape and skills of our workforce to the market, while addressing continued low levels of attrition,” the firm explained in a statement, as quoted by Bloomberg.

Despite the recent cuts, KPMG’s audit operations have experienced growth. In 2023, the division brought in $3.7 billion in revenue, underscoring its importance within the firm’s broader service offerings in accounting, tax, and consulting. This wave of layoffs comes just a year after the firm reduced its U.S. staff by 2,700, a response to slower demand for deals advisory services that affected several of the Big Four firms globally, as per the report.

These staff adjustments come as other firms in the Big Four face similar challenges. PwC LLP, for example, cut 1,800 positions across its U.S. assurance, tax, and advisory services in September, the report added.

Big four under pressure

Global revenue growth has been impacted for Big Four firms like Deloitte, Ernst & Young, and PwC, with all three reporting a slowdown in financial results earlier this fall. KPMG is set to release its own network-wide figures in December, as per the Bloomberg report.

Amid these shifts, KPMG CEO Paul Knopp recently urged reform to CPA licensing standards, citing the profession’s diminishing talent pipeline. While Knopp reported no immediate recruiting issues at KPMG, he raised concerns over the impact of a shrinking CPA workforce on corporate accounting teams and smaller firms.