KPMG cuts jobs in UK as it warns of more job cuts to come

17 October 2023 , 13:38

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The announcement comes just a week after KPMG was slapped with a record £21 million fine. (Image: PA Archive/PA Images)

KPMG, the financial services and auditing giant, is planning to cut jobs in its UK deal advisory business due to a slowdown in City dealmaking. The company has announced plans to reduce roles and freeze pay in this division.

It's believed that about 110 people, nearly 7% of the company's almost 1,700-strong UK deal advisory team, will be affected by these changes. This news was first reported by the Financial Times.

Just last month, KPMG started discussions over plans to get rid of up to 125 jobs in its consulting business. Earlier this year, the company also warned that its bonus pool for employees would likely be smaller this year compared to last.

A spokeswoman for KPMG UK said: "A challenging economic environment has driven a softening in a number of markets, including the deals market."

She added: "These conditions have impacted demand in certain areas, as some clients have chosen to pause or delay projects."

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"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."

This announcement comes just a week after KPMG was slapped with a record £21 million fine by the auditing watchdog over its work for the collapsed outsourcing firm Carillion.

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Steve Charnock