KPMG UK Considers Cutting 6% of Audit Staff

KPMG UK is planning on cutting around 440 jobs in its audit division – with nearly 600 employees at risk. 

These cuts would impact around 6% of the division’s employees, and follows a period of lower than anticipated attrition.  

A spokeswoman for KPMG UK told The Times: “In our audit business, alongside hiring for growth, we expect to see a regular pattern of natural attrition.

“But 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.

“This isn’t a decision we take lightly, and we will support our people throughout this consultation.”

Workforce transformation at KPMG

This is not the first time KPMG has reduced its headcount. 

In 2023, the company announced it was laying off 5% of its US workforce – or around 1,900 people – citing “economic headwinds coupled with historically low attrition,” according to a spokesperson.

Following that, the company cut around 2% of its US audit workforce in October 2025, also attributed to low turnover, as well as shifts in the way the company’s audit division operates. 

The company has increased its use of AI in the auditing process though Clara, its global smart audit platform. According to KPMG, the technology can help drive a risk-based, data driven quality audit, which gives clients increased visibility and efficiency.

Scott Flynn, Global Head of Audit at KPMG International, says of the technology: “We’re continuing to build out our AI capabilities with increasingly sophisticated agents in KPMG Clara to enable KPMG firms’ auditors to more effectively respond to risks and deliver deeper audit insights. 

“As KPMG firms accelerate the adoption of this innovative technology and deploy new capabilities, we are maintaining a high level of professional skepticism and upskilling KPMG professionals to drive trust in the capital markets.”

Headcount reductions in Big Four companies 

As demand for consulting services slows, decreases in headcounts can be seen across the Big Four. 

In 2025, PwC’s headcount fell from 36,006 in 2024 to 33,770 in 2025 – with the company’s entry-level hires falling from 1,500 to 1,300. 

Marco Amitrano, Senior Partner of PwC, said on LinkedIn that AI is “certainly reshaping roles.”

He wrote: “At PwC, our entry-level numbers are lower this year, reflecting the wider slowdown in investment, hiring and deal-making across the economy.”

EY also laid off around 50 staff members – including partners – in 2025, and McKinsey is rumoured to be considering cutting 10% of its workforce over the next 18 to 24 months, according to reports from Bloomberg. 

A new phase of leadership

As KPMG looks to reduce its headcount, the company has appointed a new CEO to oversee change within the company. 

In March, it announced that Gary Wingrove, currently Global Chief Operating Officer, would be the new CEO of KPMG International, beginning a four year term in October. He will succeed Bill Thomas, who served as CEO since 2017. 

Gary said: “KPMG is a people-first business – enabled by technology, strengthened by our culture and unified by a global network of member firms that enables our teams to bring the best of KPMG’s expertise to clients wherever they are. 

“As client needs evolve, I am committed to ensuring we bring agility, deep expertise and AI‑enabled solutions to help them navigate complexity, manage risk and seize opportunities with confidence.”