KPMG’s UK unit has warned nearly 600 audit employees their roles may be at risk, with up to 440 exits expected following a redundancy consultation, Bloomberg reported.
The proposed cuts are largely targeted at assistant manager-level qualified accountants and could impact about 6% of the division’s workforce.
Broader industry signals, including McKinsey’s potential job reductions and PwC’s AI-focused restructuring, highlight structural changes underway in consulting.
KPMG Flags Up to 440 Job Cuts in UK Audit Unit Amid Consulting Slowdown
KPMG’s UK audit arm may see up to 440 roles cut as consulting firms reassess hiring strategies amid slower growth and rising AI-led disruption
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Summary
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KPMG’s UK arm has warned hundreds of employees in its audit division that their roles could be at risk, as the firm looks to recalibrate its workforce amid changing market dynamics, Bloomberg reported on Friday, citing people familiar with the development.
According to an internal communication reviewed by Bloomberg, nearly 600 employees have been informed that they may face job losses, subject to the outcome of an ongoing redundancy consultation process. If the proposal proceeds as expected, the firm anticipates that up to 440 employees could ultimately exit the business.
Roles likely to be affected
The potential reductions are largely focused on assistant manager-level employees who hold professional accounting qualifications, a person aware of the matter told Bloomberg. The move could affect roughly 6% of the audit division’s workforce, which currently employs about 7,100 people.
Reason behind the layoffs
Explaining the rationale, a KPMG UK spokesperson said that lower attrition levels in certain parts of its audit practice have created an imbalance in workforce requirements. “Current market conditions mean our attrition rates are very low within certain parts of our audit population, which is why we are proposing to right-size those areas,” the spokesperson said in a statement to Bloomberg, adding that the decision had not been taken lightly.
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The development reflects a broader trend across the consulting and professional services sector, where firms are increasingly tightening costs after a period of rapid hiring and expansion.
Wider slowdown across consulting sector
McKinsey & Co. has internally discussed the possibility of reducing roles in non-client-facing teams, potentially affecting about 10% of employees in those functions. The firm is expected to stagger any workforce reductions over the next 18 to 24 months, which could translate into several thousand job cuts.
Meanwhile, PricewaterhouseCoopers (PwC) has also flagged the growing importance of artificial intelligence within professional services, warning earlier this month that partners who fail to integrate AI into their work risk being left behind as the industry evolves.
Concerns about the long-term impact of AI on employment are also gaining traction among industry leaders. Anthropic CEO Dario Amodei, in his January 2026 essay The Adolescence of Technology, argued that artificial intelligence could reshape labour markets more rapidly and extensively than previous waves of technological disruption.
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Together, these developments highlight how consulting firms are navigating a dual transition — adjusting workforce structures in response to slower growth, while simultaneously preparing for the structural changes expected from accelerating AI adoption.