KPMG and EY are now demoting underperforming partners, abandoning the traditional "job-for-life" model that defined Big Four accounting firms for decades. The move marks a significant shift from the past practice of simply asking struggling senior partners to retire, rather than formally downgrading their status.

This departure reflects intensifying pressure on professional services firms to demonstrate stronger governance and accountability to clients and regulators. The Big Four have faced increased scrutiny following high-profile audit failures and corporate scandals that damaged client trust and prompted calls for cultural reform.

The policy shift could reshape how senior professionals at these firms approach career risk and performance. Partners may now face real consequences for underperformance well before retirement age, fundamentally changing the implicit employment contract at the world's largest accounting firms.