KPMG to Cut 5% of US workforce amid economic challenges

June 27, 2023 (MLN): KPMG is laying off 5% of its U.S. employees after feeling the pinch of "economic headwinds, coupled with historically low attrition," a spokesperson for the Big Four accounting giant said on Monday, as Reuters reported.

The firm had over 39,000 employees in the U.S. at the end of its last fiscal year on September 30.

KPMG, which cut about 2% of its U.S. workforce in February as per a Financial Times report, was the first of the world's four biggest accountancy firms to slash jobs in the country.

The latest round of job cuts would take place through the rest of its 2023 financial year, the firm said.

"We do not take this decision lightly. However, we believe it is in the best long-term interest of our firm and will position us for continued success into the future," KPMG said in an emailed statement.

Several companies have trimmed their headcount to batten down the hatches in anticipation of a potential economic downturn later in the year.

In April, Ernst & Young's U.S. division shed 5% of its workforce. Deloitte had also reported to have slashed jobs.

KPMG's fresh round of layoffs were first reported by the Financial Times.

Besides KPMG, EY, Deloitte and PricewaterhouseCoopers (PwC) make up the Big Four of accounting firms.

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