KPMG LLP said Monday that it has cut roughly 330 people from its U.S. audit business to combat near historic low employee turnover rates.
Employees learned last week of the layoffs that affect less than 4% of the firm's audit workforce of nearly 9,000 people, a source familiar with the firm's strategy said.
"The actions reflect our ongoing focus to align the size, shape and skills of our workforce to the market, while addressing continued low levels of attrition," the firm said in a statement.
Despite the staffing cuts — first reported by the Wall Street Journal — KPMG's audit business is growing, the firm said. Audit generated $3.7 billion in revenue for the US accounting, tax, and consulting firm in 2023, its latest available results.
The layoffs come a year after the firm eliminated 2,700 U.S. jobs through previous reductions. Weaker demand for deals advisory triggered job cuts last year across the Big Four firms' largest affiliates around the world as they pivoted to focus on in-demand services like artificial intelligence and other technology transformation services.
Staff reductions have resumed this year, however, despite the pivot. Competitor PwC LLP laid off 1,800 U.S. workers in September spanning its assurance, tax and advisory practices.
Shifting demand and pricing pressures have curbed global revenue growth for Deloitte, Ernst & Young and PwC, which reported annual results earlier this fall. KPMG is expected to release network-wide results in December.
Last month, KPMG CEO Paul Knopp called for reforming CPA licensing requirements to counter a shrinking pipeline of qualified accountants. Knopp said the talent shortage hasn't affected KPMG's own recruiting but that he worries about the impact on corporate accounting teams and other CPA firms.
