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KPMG to axe up to 110 roles in UK deal advisory unit

KPMG UK Head office in Canary Wharf

KPMG is considering job cuts and wage freezes in its UK deal advisory division.

The accounting giant is grappling with a sluggish deals market and a challenging economic landscape.

Sources said approximately 110 employees in its deal advisory team would be affected.

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They constitute nearly 7 percent of the almost 1,700-strong UK deals business. 

KPMG has previously reduced its workforce by 2.3 percent, or 125 positions within the UK consultancy division

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The firm, where partners earned an average of £717,000 last year, employs about 17,000 people across its audit, consulting, tax, and deals practices. 

KPMG undertook these redundancies as a last resort after implementing measures such as reassigning staff to areas with higher workloads.

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Additionally, deal advisory teams within the firm won’t see any pay increases this year.

It’s a departure from the typical annual salary increments for employees at one of the Big Four accounting firms.

The impact of rising costs and a decrease in dealmaking activities has created significant challenges for major advisory firms. 

KPMG's competitors, Deloitte and EY, are also making workforce adjustments in response to these challenges. 

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Deloitte is cutting 800 jobs in the UK, while EY is reducing its financial services consulting workforce by 150 positions.

The Big Four firms have initiated a larger redundancy process in the US, impacting several thousand employees. 

KPMG has cited a "challenging economic environment" as a key factor driving the need for these layoffs.

Demand in specific sectors has waned due to client decisions to delay or pause projects.

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KPMG said: “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.” 

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