KPMG lays off 700 employees in US

KPMG, one of the world’s largest accounting firms, is set to cut nearly 2% of its US workforce, affecting around 700 employees, according to recent reports. KPMG will be the first of the Big Four accounting firms to make such cuts in the US.

The move follows a trend of cost-cutting measures by major financial firms, including banks, asset managers, and fintechs, amid a challenging economic climate that has impacted consumer spending and depressed demand for various business units.

KPMG had initially boosted its hiring in the aftermath of the pandemic as demand for IT consulting and deal advisory work surged. However, KPMG’s US headcount had increased by over 2,000 to 35,266 at the end of 2021, according to its most recent report. The company explained that it is experiencing prolonged uncertainty that affects certain parts of its advisory business that drove outsized growth in recent years.

Although the KPMG spokesperson said the business and outlook remain strong, job postings by the Big Four are 50% lower than a year ago, indicating a slow down in hiring. EY has also made cuts, including the axing of holiday bonuses for US staff.