KPMG UK fires 600 employees…11% pay hike for partners

• If you’ve been following the Big 4 lately, you’ve probably heard the buzz: KPMG UK is planning to cut almost 590 roles.
• Hundreds of audit professionals are at risk, according to the Financial Times.
• And yes, most of the affected roles are assistant managers.

The headline

On March 27, KPMG UK announced (internally to its staff) a round of layoffs.

But here’s the part that matters:

• 440 roles are from audit
• The majority are assistant managers
• That’s roughly 6% of its 7,100 audit workforce (KPMG employs about 16,700 people in the UK)

In Advisory: Around 120 roles (could be more) are expected to go out the window, according to the Financial Times.

Why is KPMG downsizing?

As per the Financial Times, the KPMG layoffs are attributed to a mix of current market dynamics and internal workforce imbalances.

• Slowing demand: KPMG’s advisory business fell 3% in 2025, reflecting a broader slowdown also seen at Deloitte and PwC. As deal activity slows and projects pause, firms are left with excess capacity.
• People aren’t leaving: With economic and geopolitical turbulence rising, fewer employees are willing to quit voluntarily.
• Correction after overseas hiring: Post-pandemic, KPMG ramped up hiring to address talent shortages, including bringing in overseas staff. As some industry chatter on forums like Reddit suggests, this led to a build-up of mid-level talent (2–3 years PQE), many with visa restrictions.
• Finally, fee pressure is becoming harder to ignore. Clients are increasingly pushing back on rising audit fees and are more open to exploring mid-tier firms as cost-effective alternatives.

And yet…profits are up

Despite the layoffs, KPMG’s financials are strong.

As per KPMG’s annual report,

• KPMG’s UK/Swiss group reported £3.6 billion in revenue for 2025, with profits before tax rising 14% to £576 million.
• Audit revenue rose by 5%
• Tax and Legal grew by 6%
• At the same time, KPMG UK’s average partner payouts rose to around £880,000, up 11% from the previous year.

Does this indicate that the layoffs are less about financial distress and more about protecting margins?

Also read: Layoffs at KPMG in its US Audit division

So, is there an offshore or AI angle?

In 2025, KPMG US and UK acquired a 33% stake in KPMG Global Services (KGS) for $210 million. Yes, signalling a push toward centralised, offshore delivery and automation.

At the same time, AI continues to be part of the conversation. The reality is that automation is reducing the time spent on routine audit tasks.

Let’s not forget, KPMG UK recently forced its Auditor Grant Thornton UK for a 14% “AI discount”!

But not everyone is buying the AI explanation.

On LinkedIn, a partner at UHY Hacker & Young shared a candid take:

“This AI risk is way overblown. KPMG, as they have always done in a downturn, is cutting staff due to simple economics.

I don’t believe KPMG mentioned AI in their statement. AI may play some part in this; time will tell, but it’s principally lower demand for services and lower staff turnover.”

So, a shift toward global delivery models and AI-enabled processes is likely a key driver behind the recent job cuts.

KPMG isn’t alone

Here’s the timeline for Big 4 layoffs in 2025:

• PwC UK: August 2025, 175 audit roles, mostly junior auditors.
• PwC US: Earlier in 2025, 1,500 jobs in audit and tax.
• PwC Middle East: September 2025, 1,500+ employees and 60 partners. Consulting roles on mega-projects such as Neom were hit hardest.
• Deloitte UK: 2025 (exact month not specified) – Up to 180 advisory roles cut.

Also read: KPMG Australia cuts 635 jobs, while Partners pocket 10.3% pay rise

Wrapping up…

Audit has always been the “safe bet.”

Unlike consulting, which depends heavily on deal activity and discretionary spending, audit is a regulated and recurring service.

Companies need audits regardless of market conditions, which is why large-scale cuts in this division are unusual.

So does this make KPMG’s decision less about a one-off restructuring and more about a bigger change in how the business is evolving?

Or is this just an overdue headcount correction?

FAQs

Q: How many global employees does KPMG have?

A: KPMG has more than 276,030 employees globally. Around 16,739 of them are based in the UK, as of October 2025.

Q: Are Big 4 laying people off due to AI?

A: Many of the Big 4 have implemented layoffs or slowed hiring, but not entirely because of AI. Several reports say that the layoffs were mainly executed because of over-hiring during the pandemic boom, slowing demand for traditional services, and cost-cutting.

Q: How many people did KPMG lay off in 2025?

A: There wasn’t any significant rounds of layoffs at KPMG in 2025. However, the firm did cut 195 audit jobs in the US.

Q: Are there any layoffs in KPMG India?

A: As of the latest public reports, there haven’t been significant, widely reported layoff announcements specifically for KPMG India. In fact, there are speculations that many of these laid-off roles are being offshored to countries like India.