KPMG To Lay Off 700 In US, First Among Big 4 Firms To Slash Jobs

The collapse in acquisition activity had an adverse effect on KPMG’s advisory business. (File)

New Delhi:

KPMG on Wednesday said that it will cut 2 per cent of its staff in the US, FT reported citing an internal announcement.

According to the report, around 700 people will be affected by the job cuts.

The decision to slash jobs was taken as the firm needed to “better align our workforce with current and anticipated demand in the market,” Carl Carande, vice-chair of KPMG’s advisory business, said.

According to the FT report, KPMG, like the other Big Four firms — EY, Deloitte, and PricewaterhouseCoopers, has been going through a bleak period due to the collapse in merger and acquisition activity. This had an adverse effect on its deal advisory business and eased demand for consulting.

“We have experienced prolonged uncertainty affecting certain parts of our Advisory business that drove outsized growth in recent year,” KPMG said to FT.

KPMG had been trying to cut expenses off late by delaying new hiring, cutting travel expenses, and posting consultancy workers to the audit and tax departments of the company, the report said.