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.
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.”