KPMG trims US advisory workforce by 4% amid shift in consulting demand

KPMG has initiated layoffs in its US advisory division, reducing its workforce by around 4% as demand softens in select consulting areas, particularly regulatory and financial services advisory.
The job cuts impact approximately 400 employees out of more than 10,000 professionals in the firm’s US advisory business. The reductions are largely concentrated in roles related to regulatory risk, customer operations, and financial services consulting. According to reports, a significant share of those affected were in lower performance bands, while senior leadership, including partners, has not been impacted.
The firm has been addressing a mismatch between earlier hiring expansion and current demand trends. During the pandemic period, advisory teams grew rapidly to meet increased client requirements. However, a slowdown in voluntary attrition has resulted in a surplus workforce in certain practice areas.
Despite the workforce reduction, KPMG has highlighted continued growth in segments such as transactions, strategy, and artificial intelligence-related services. The restructuring is aimed at realigning talent with these higher-growth areas and improving operational focus.
Alongside changes in advisory, adjustments are also being made in the audit practice. The firm has reportedly begun reducing its US audit partner pool, with around 100 partners expected to exit, including through early retirement options.
The move reflects broader trends in the consulting industry, where firms are recalibrating staffing in response to slower growth in traditional advisory segments while prioritising emerging and technology-driven service lines.

​