Big FourCoronavirus

KPMG to make job and pension cuts

Big Four’ accountancy firm KPMG is set to cut just under 200 jobs and slash pension contributions in a bid to cut costs in the wake of Covid and industry reforms. 

According to Sky News, KPMG has decided to axe just under 200 jobs across its UK workforce.

Under 100 roles are set to be slashed from its consulting practice, while a “similar” number will be axed from its internal business services function. 

Sources told Sky that affected employees and partners were notified of the upcoming in a briefing by chairman Bill Michael this morning (22 July).

In addition to the headcount reduction, the firm has reportedly launched a consultation process on reducing employer pension contributions to 4.5% of total salaries, which may “disproportionately” affect older colleagues on “more generous” pensions schemes. 

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A KPMG spokesperson told Accountancy Today: “Due to changing demand from our clients as a result of the Covid-19 pandemic, we have announced proposals to make fewer than 100 positions in our consulting business redundant. Our consulting practice employs more than 3,000 people and is continuing to see high demand for a range of core services such as digital transformation, supply chain management and cyber security.

“Last year, we began a programme of work which analysed every aspect of the firm’s internal business devices function to look for efficiencies. That work was undertaken with our long-term sustainability in mind, but it has also proved integral to the resilience our firm has shown in the last few months. As a result of the Covid-19 pandemic, we have however seen a change in demand for some areas of our internal support provision and as a result we are proposing to make fewer than 100 roles within our business services function redundant.”

They added: “We are operating in highly volatile times and are proposing a series of actions to safeguard our business in the medium and long term. We are consulting with our people on a proposed temporary change to our employer pensions contributions.  At this stage, no final decision has been taken.”

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