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KPMG has reportedly cut the bonuses of its UK workforce and lowered commission for salespeople due to its profits suffering after a slowdown in deals this year, City A.M. has reported.
This comes as investors have decided to sit out the volatility in the markets en-masse.
The Big Four firm informed its staff of the changes, which will see bonuses be cut back by as much as half, last week. Sales staff were told that their commission is likely to be held back until the end of the year.
In a note addressed to staff, City A.M. confirmed that bosses told workers that while the firm has seen double-digit growth in many areas of the firm, it had not been “as high” as they had planned.
According to City A.M, KPMG had taken the same measures during the pandemic in 2020 when corporate clients tightened their belts.
A spokesperson for KPMG told City A.M: “A challenging economic environment at the start of our financial year saw a softening in the deals market, and some clients defer projects to later in the year; this dynamic has affected the performance of some areas of our firm.
“We remain focused on delivering our firm’s strategy and continue to invest through the economic cycle, in new technology and services, supporting our clients as they navigate this volatile operating environment.”
In addition, KPMG has reportedly already taken steps to rein in its costs globally in the past year, becoming the first Big Four firm to slash jobs in the US in February when it laid off 2% of its workforce, representing around 700 people.
