KPMG has unveiled significant changes to its consulting division, aimed at restructuring its operations and adapting to evolving market demands. The firm plans to reduce its senior staff by 200 as part of a cost-saving initiative to reclaim $80 million, with intentions to redirect these savings towards bolstering digital solutions, industry expertise, and innovative delivery methods. This strategic pivot reflects KPMG’s response to declining demand for traditional consulting services, as noted by consulting Managing Partner Paul Howes, who emphasized the need for a transformative shift in business strategy.
This restructuring marks KPMG’s second consecutive year of substantial layoffs, following a similar reduction of 200 roles in 2023, primarily within its consulting sector. The move aligns with broader industry trends, where major firms like PwC, EY, and Deloitte have also undertaken workforce reductions and operational restructuring amidst challenges such as the aftermath of the PwC tax leaks scandal and fluctuating consulting demand post-COVID-19. KPMG aims to mitigate the impact by upskilling 50 employees and reallocating resources to high-demand areas like artificial intelligence, underscoring its commitment to sustainable growth and profitability. The firm expects to finalize the overhaul by August 2024, with affected staff notified by June 21st.
