KPMG is cutting close to 600 UK positions as the Big Four accounting firm grapples with persistent cost pressures in a softer market. Staff received notification of the redundancies on Friday, with 440 assistant manager roles in the audit division facing elimination out of approximately 590 roles at risk. The advisory arm will shed about 120 positions, primarily in enterprise risk functions, with additional back-office and economics team reductions.

These cuts follow similar cost-cutting measures KPMG implemented last year and underscore the professional services sector's ongoing struggle to adapt to reduced demand for consulting services despite pandemic-era peaks. KPMG cited low attrition rates in its audit business as the primary driver for the audit cuts, noting that foreign employees with sponsored visas also contribute to staffing bloat. The firm's UK advisory business contracted 3% last year, mirroring declines at peers EY, PwC, and Deloitte, even as overall profitability rose.

KPMG's UK partners earned more than rivals PwC and EY last year, averaging £880,000 annually, reflecting successful cost management under CEO Jonathan Holt. Holt, who lost the global leadership race this month, has frozen pay and reduced equity partners to boost profits by 14% to £576 million. These reductions contrast with typical Big Four redundancies that historically targeted other roles due to audit's steadier nature.

KPMG's UK workforce totals 16,700 employees, with advisory accounting for nearly half of annual sales. The UK consulting market grew less than 4% last year, though projections suggest modest improvement to 6% by 2026.