KPMG Cuts Jobs in US Audit Division Amid Shifts in Market Demand and Low Employee Turnover

KPMG LLP announced on Monday that it has reduced its U.S. audit workforce by approximately 330 positions, accounting for nearly 4% of its 9,000-person audit division. This decision comes in response to historically low employee turnover, which has affected the firm’s staffing structure, according to a report by Bloomberg. KPMG’s decision to streamline its workforce aligns with changing market demands and reflects a strategic adjustment in line with its vision for sustained growth and operational efficiency.

In a statement, KPMG emphasized its commitment to aligning workforce size and skill sets with the evolving needs of the market, addressing low attrition levels within the company. The move underscores a broader trend among Big Four firms, with other industry leaders such as PwC also facing challenges in workforce management. In September, PwC trimmed 1,800 positions across its U.S. divisions, including assurance, tax, and advisory services, as market shifts impacted service demand.

Despite the job cuts, KPMG’s audit operations remain robust, bringing in $3.7 billion in revenue in 2023 alone. This figure highlights the significance of the audit division within the firm’s extensive suite of services, including accounting, tax, and consulting. However, the recent adjustments come just a year after KPMG laid off 2,700 employees in its U.S. operations, largely within the deals advisory segment, as demand for these services declined globally.

Big Four firms have faced similar market pressures. Global revenue growth has slowed, impacting Deloitte, Ernst & Young, and PwC, each of which reported lower financial results earlier this year. In response, KPMG CEO Paul Knopp has called for CPA licensing reforms to address the profession’s shrinking talent pool. While KPMG has not experienced immediate recruiting challenges, Knopp highlighted concerns about the future of corporate accounting teams and smaller firms facing talent shortages.

KPMG is expected to release its annual revenue report in December, providing further insights into the company’s financial health and strategic direction amidst an increasingly dynamic market environment.