KPMG, one of the Big Four accounting firms, is laying off 5% of its U.S. workforce. The layoffs come as the firm faces “economic headwinds, coupled with historically low attrition,” according to a spokesperson.
The firm had over 39,000 employees in the U.S. at the end of its last fiscal year, so the layoffs will affect approximately 2,000 people. The cuts will take place through the rest of KPMG’s 2023 financial year.
“We do not take this decision lightly,” the spokesperson said in a statement. “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 is not the only company that has announced layoffs in recent months. Other companies that have trimmed their headcount include Ernst & Young, Deloitte, and PricewaterhouseCoopers.
The layoffs come as the U.S. economy faces a number of challenges, including rising inflation and interest rates. These challenges have led some economists to warn of a potential recession.
It remains to be seen how the layoffs at KPMG will affect the firm’s long-term prospects. However, the cuts are a sign that the accounting industry is not immune to the economic challenges facing the U.S. economy.
KPMG’s recent layoffs are part of a broader trend in the accounting industry. Other Big Four firms, such as Ernst & Young and Deloitte, have also announced layoffs in recent months. This is likely due to a number of factors, including the rising cost of living, the war in Ukraine, and the ongoing COVID-19 pandemic.
The layoffs at KPMG are likely to have a significant impact on the firm’s workforce. The cuts will affect employees across all levels and functions, and they could lead to a loss of institutional knowledge. This could make it difficult for KPMG to compete with other firms in the future.
The layoffs at KPMG are also a sign of the changing economic landscape. The U.S. economy is facing a number of challenges, including rising inflation and interest rates. These challenges could lead to a recession, which would have a significant impact on the accounting industry.
