KPMG UK Proposes 440 Job Cuts in Audit Division Amid Record Low Attrition

KPMG UK has initiated a formal redundancy consultation process that puts nearly 600 positions at risk within its audit practice. The professional services giant expects that the restructuring will ultimately lead to approximately 440 employees leaving the firm. This move signals a significant shift in the Big Four accounting landscape, as firms grapple with a post-expansion cooling period.
Strategic “Right-Sizing”
The proposed reductions are expected to impact about 6% of the audit division, which currently employs roughly 7,100 people. According to internal communications, the cuts are specifically targeted at assistant managers who hold professional accounting qualifications. This cohort represents a substantial portion of the firm’s mid-level workforce.
The primary driver behind the move, according to KPMG, is an “unusually low” attrition rate. In the professional services industry, business models typically rely on a steady “churn” of employees leaving for roles in industry or other firms. However, current economic stability—or perhaps caution among employees—has resulted in fewer people resigning than the firm’s financial models anticipated.

“Current market conditions mean our attrition rates are very low within certain parts of our audit population, which is why we are proposing to right-size those areas,” a KPMG spokesperson stated, adding that the firm is committed to supporting those affected through the consultation.

A Broader Industry Trend
The layoffs at KPMG UK are not an isolated incident but rather part of a wider correction within the consulting and professional services sector. Following a period of aggressive hiring and rapid expansion to meet post-pandemic demand, many firms are now facing a reality of slower client spending and market saturation.
By adjusting its headcount now, KPMG aims to align its workforce costs with the current demand for audit services. For the affected assistant managers, the news is particularly jarring given that this demographic was highly sought after during the “war for talent” only two years ago.
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