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KPMG is cutting 5% of its U.S. staff as a result of "economic headwinds, coupled with historically low attrition," a Big Four accounting company representative said on Monday. At the end of its previous fiscal year on September 30, KPMG employed over 39,000 individuals across the United States.
KPMG had already reduced its workforce by 2% earlier in February, as reported by the Financial Times. This move makes KPMG the first among the Big Four accounting firms to make such job cuts in the country.
The company said that the most recent round of job cuts would continue through the remainder of its 2023 fiscal year.
"We do not take this decision lightly. However, we believe it is in the best long-term interest of our firm and will position us for continued success into the future," KPMG said in an emailed statement.
The accounting industry as a whole has witnessed similar workforce reductions, as other companies have also taken steps of reduction in response to potential economic downturns. Ernst & Young's U.S. division, for instance, downsized its workforce by 5% in April, while Deloitte has also reported job cuts. The recent layoffs at KPMG were initially reported by the Financial Times, drawing attention to the challenges faced by the accounting sector and underscoring the importance of adjusting strategies in response to changing market dynamics.
It is worth noting that KPMG, along with Ernst & Young, Deloitte, and PricewaterhouseCoopers (PwC), forms the group known as the Big Four accounting firms. These firms play a crucial role in the industry and their actions reflect the broader landscape of challenges and adjustments necessary within the accounting field.
— Harshita Kumar
Also, Read UBS to Cut 30% of Workforce in Credit Suisse Acquisition
