KPMG, the auditing firm, will cut approximately 5pc of its US workforce as demand for consulting services declines.
Paul Knopp said that the US Chief Executive of the “Big Four” auditors, Paul Knopp, stated that the cuts were designed to address a “significant mismatch” in the US workforce with the reduced demand due to global economic uncertainty.
In a memo he sent to his staff, he wrote: “While we have a strong pipeline of business opportunities and continue to be successful in the market, we are facing economic headwinds which are not specific to our firm or our company.”
The decision will affect approximately 1,950 employees, based on 39,000 US workers employed by the company.
This comes at a time when consulting firms are dealing with soaring inflation, and global economic insecurity, which have forced clients to abandon projects and demand lower fees.
KPMG announced internal reductions on Monday that will impact all areas of its American operations, including advisory, audit, and tax practices.
The cull is scheduled to take place before the end of September, the company’s fiscal year.
KPMG has announced its second round of job cuts this year. In February, it was the first big four auditing firm to do so.
KPMG announced plans in February to cut nearly 700 positions in its US advisory business. This represented about 2pc in that country.
According to Mr Knopp who is also a member of KPMG’s global board, the decline in US employees leaving the auditor’s office voluntarily was lower than expected.
This comes after US consulting companies in recent months cut thousands of jobs due to weaker demand.
Auditor After a failed attempt at separating its consulting and accounting arms, EY announced plans to reduce 3,000 US jobs. Deloitte is reportedly planning to lay off approximately 1,200 American employees.
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