Why KPMG is firing over 400 employees in UK
What's the story
KPMG's UK unit has announced plans to lay off staff in its auditing division. The company expects up to 440 employees could leave if a redundancy consultation proposal is approved. The proposed cuts mainly target assistant managers who are qualified accountants, Bloomberg reported. This move comes as part of an effort to adjust staffing levels in certain areas of the audit population amid current market conditions.
Official statement
What did KPMG UK say?
A spokesperson for KPMG UK said, "In our audit business, we expect to see a regular pattern of natural attrition." However, they added that "current market conditions mean attrition rates are very low within certain parts of our audit population," hence the proposal to right-size those areas. The statement did not specify how many job cuts were likely.
Workforce impact
Job cuts targeting assistant managers
The proposed job cuts would mainly impact assistant managers who are qualified accountants, accounting for some 6% of the division's total workforce. This comes as a part of KPMG's broader strategy to manage staffing levels in response to current market conditions. The firm has already informed nearly 600 employees in its audit business that their jobs are at risk, Bloomberg reported citing people familiar with the matter.