Accounting Giant KPMG to Lay Off nearly 2,000 Employees In US Citing Economic Headwinds

Accounting giant KPMG is cutting nearly 2,000 jobs in the United States, citing 'economic headwinds, coupled with historically low attrition'.

According to the Big Four accounting behemoth, the current round of job cuts will affect about 5 percent of its employees. KPMG had laid off around 700 people earlier this year. The company had around 39,000 employees in the US.

KPMG Wikimedia Commons

The job cuts will take place through the rest of the 2023 financial year. "We do not take this decision lightly. However, we believe it is in the best long-term interest of our firm and will position us for continued success into the future," the company said in a statement.

Even as demand for IT and strategic consulting eased in the aftermath of the prolonged coronavirus pandemic, KPMG and other major consulting companies suffered setbacks. Revenue from merger and acquisition activity also dwindled, forcing these corporations to look at the cost side. "Our business and outlook remain strong. However, we have experienced prolonged uncertainty affecting certain parts of our Advisory business that drove outsized growth in recent years," KPMG said earlier this year when it announced the first round of job cuts.

Meanwhile, investment bank Goldman Sachs is reportedly sacking more than 100 managing directors. The fresh cuts will affect as many as 125 managing directors from the bank's investment banking division. There were reports a month earlier that the bank was cutting as many as 250 jobs. Earlier this year, Goldman Sachs laid off some 4,000 employees.

job cuts

In February, global consulting giant McKinsey & Co cut as many as 2,000 jobs. The job cuts come after the global behemoth that advises corporations on a whole gamut of business affairs posted more than $15 billion in revenues in 2022. According to a Bloomberg report, McKinsey's revenue in 2021 was $15 billion, which it surpassed last year.