KPMG UK to Cut 200 Advisory Jobs Amid Softening Consulting Demand
KPMG plans to reduce around 200 advisory roles in the UK following a period of slower client demand. In Pictures via Getty Images
KPMG is preparing to reduce headcount in its UK advisory division by around 200 roles, with positions in artificial intelligence and cybersecurity among those affected, according to a report by the Financial Times citing sources familiar with the decision.
The proposed job losses account for roughly 4 per cent of the firm's UK advisory workforce. Staff whose roles are designated for redundancy are expected to leave the company next month, subject to formal consultation procedures. People familiar with the situation indicated that management informed affected employees of the need to "right-size" operational capacity across the targeted business units.
Extended Demand Softening Across Professional Services
The planned reductions follow an earlier restructuring at KPMG that reportedly affected 600 jobs, including more than 400 audit roles and roughly 120 advisory positions. That previous workforce reduction was driven by a combination of sluggish market demand and lower than usual staff turnover.
Consulting revenues across major professional services firms have experienced sustained downward pressure following the surge in corporate advice spending during the pandemic period. For the financial year ending September 2025, revenue within KPMG's advisory practice, which encompasses deals and consulting services, declined by 3 per cent.
Competitors across the Big Four, including EY, PricewaterhouseCoopers, and Deloitte, have recorded similar revenue contractions across their respective advisory divisions. Simultaneously, the rapid integration of artificial intelligence tools across professional services has raised broader questions about the future of labor intensive consulting models.
Headcount Trends and Senior Management Strategy
KPMG currently employs approximately 15,800 people across the UK. This represents a decline from 16,600 employees a year ago and a decrease from more than 17,000 staff members employed during the height of the Covid pandemic.
The latest round of advisory redundancies forms part of a broader cost management initiative overseen by Jon Holt, senior partner at KPMG UK.
A spokesperson for KPMG UK addressed the proposed workforce changes in a statement provided to the International Accounting Bulletin:
"As our market evolves, we are adapting where we are focusing and how we are set up to make sure we have the right skills in place to best serve our clients. To respond to these market dynamics combined with low levels of attrition, we are proposing reductions in some of our advisory client-facing teams and will support our colleagues throughout this process."