Media across the pond is reporting this morning that KPMG UK is laying off about 6% of its deal advisory people, 110 employees according to City A.M. The remaining 1700 or so deals folks have been informed not to expect any raises this year.
Said a KPMG spokesperson to City A.M.:
“A challenging economic environment has driven a softening in a number of markets, including the deals market. These conditions have impacted demand in certain areas, as some clients have chosen to pause or delay projects. We have therefore taken the difficult decision to put forward proposals to reduce our headcount in a small number of areas of our business. Our people are at the heart of our firm and our priority is to support them throughout this consultation.”
Financial Times reported a couple weeks ago that KPMG UK was looking to get rid of 125 staff — 2.3 per cent of consulting — and that the cuts were due in part to low attrition. “The person added that KPMG’s issues arose partly from a decline in the consultant “attrition rate” — the number leaving the firm each year,” the FT article said. “The drop, which sector watchers attribute to the decline in alternative options for consultants, has led to excessive growth in staff numbers because hiring plans were designed around higher anticipated rates of departure.”
See also: KPMG to lay off about 6% of deal advisory staff in UK – source [Reuters]
Not sure how we missed this story but thanks to the random commenter who brought it to our attention. New KPMG Global Chairman Michael Andrew was recently