Kamal Ghorui
KPMG is laying off hundreds of employees in the US Advisory division. The latest round of layoffs comes as part of a restructuring effort tied to shifting demand across consulting services. According to a report by The Wall Street Journal, the company has cut about 4% of its advisory workforce in the United States, affecting roughly 400 employees from a team of more than 10,000. The layoffs mainly impact consultants working in regulatory risk advisory, customer operations and financial services, while partners are not affected.In a statement confirming the layoffs, the company told WSJ, “These actions focus on a strategic realignment to make sure our people’s skills and capabilities are aligned with future demand. We will continue to support our people in upskilling for the future, while evaluating the size, shape and skills of our workforce to best serve the market.”The move comes as KPMG faces slower demand in certain advisory segments, particularly those linked to regulatory and compliance services. The company has also been dealing with lower-than-expected voluntary attrition following aggressive hiring during the pandemic.
KPMG says other areas of its business continues to expand
While some advisory segments have seen reduced demand, KPMG said other areas of its business continue to expand. The company pointed to growth in services related to transactions, strategy and artificial intelligence. These areas are becoming a larger focus as companies adjust to changes in technology adoption and deal activity.The layoffs in advisory follow additional workforce changes within KPMG. The company has also informed employees about planned cuts in its US audit business, where around 10% of audit partners are expected to exit. This includes roughly 100 partners, some of whom opted for early retirement.Industry trends suggest that advisory divisions across large accounting companies have been under pressure due to slower revenue growth in certain consulting areas.Changes in the regulatory environment have also affected demand. Reports indicate that reduced regulatory pressure has led some financial services clients to scale back their compliance and risk consulting engagements.As a result, companies like KPMG are adjusting their workforce structure to better align with evolving market needs and service demand.
