News of upcoming layoffs in the world’s largest accounting firm KPMG UK has come to light. The sword is hanging over the employees of the audit and advisory department of the company, in which the jobs of about 600 employees are in direct danger.
Audit and advisory departments affected
According to Bloomberg News, in an internal memo the affected employees have been told that they may be fired. This decision will depend on the redundancy consultation process. Out of 7100 employees in the audit business, about 440 may have to face retrenchment.
There is a proposal to eliminate about 120 posts in the Advisory Department, especially the employees of the Enterprise Risk Department will be affected. This department advises companies on governance, risk and compliance. Some back-office staff and economics team members will also be affected by the layoffs.
company statement
A KPMG UK spokesperson said the current market conditions required right-sizing of headcount in some parts of the audit department. This decision has been taken seriously.
affected employees
According to the report, most assistant managers and qualified accountants will be affected. This will affect about 6 percent of the employees in the audit department.
Why are advisories being cut?
According to the Financial Times, the number of employees sitting on the bench in the advisory department has increased in the last six months. Lack of new projects and loss of old projects is also the reason behind this.
Overall position in the industry
KPMG has a total of 16,700 employees in the UK. Similarly, McKinsey & Co. It has also planned to reduce the number of employees in non-client-facing departments by about 10 percent, which will be implemented in a phased manner over the next 18–24 months. This layoff by KPMG UK is not only a matter of concern for the employees, but it also indicates the challenge of cost control in the global accounting and consulting industry.