Job Losses at KPMG as Two Hundred Roles Cut in Consulting Sector

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KPMG’s Australian wing anticipates the unfortunate need to cut around 200 jobs in the upcoming months due to a slowdown of activities within their management consulting unit.

In a drastic move, the Big Four corporation plans to cut up to 2% of its total staff size, with more than half of those cuts hitting its consulting arm.

Job Losses at KPMG

In light of adverse economic times, which have led to a more budget-conscious clientele, KPMG’s consultants are experiencing a slight decline in demand for deals, strategy and organisational change services. However, mission-essential projects such as cybersecurity, risk management and technology remain unaffected by the dip.

As KPMG’s national managing partner of People & Inclusion, Dorothy Hisgrove has initiated a comprehensive review across the firm to establish how many positions and roles will be impacted. She said, “after an impressive year concerning our employee growth numbers, we’re currently making minor adjustments.”

Despite posting record financial figures in their 2021/22 fiscal year, KPMG still found it necessary to make cuts; these affected personnel numbers as they grew by 16% and added 2,000 new staff members throughout the year, bringing headcount up above 10 000. Unsurprisingly, though, KPMG’s management consultancy division spearheaded this growth, outperforming all other divisions.

KPMG ‘pioneer of Big Four’

The American firm implemented multiple strategies to prevent layoffs, including postponing new hire start dates, slashing travel budgets, and transferring some advisory staff to audit and tax departments—unfortunately, more than these measures were needed to combat an extended demand decrease.

KPMG is the pioneer of Big Four firms to set up layoffs in both Australia and the US, according to sources familiar with this situation. However, its competitors such as Deloitte, EY, and PwC remain vigilant on market developments which might lead them down a similar road. However, reductions have yet to be declared by any of these companies.

When KPMG previously downsized in Australia, 200 employees were let go at the beginning of this pandemic. This decision led to a social media backlash from some workers who felt their welfare was disregarded for profit.

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