KPMG axes consultants amid M&A slowdown
Big Four accountant KPMG is shedding more of its consultants amid a continuing slowdown in corporate dealmaking.
The group confirmed that about 110 in its deal advisory teams were facing redundancy, representing about 6% of its almost 1,700-strong UK deals practice.
Those who have been kept on have been told that they will not be getting pay rises this year, according to the Financial Times.
UK staff have already been told that this year’s bonus pool will be smaller than last year.
The M&A market has been squeezedf by higher borrowing costs that has forced companies to put their expansion plans on ice, while a third fewer businesses have listed in London this year than in 2022.
“A challenging economic environment has driven a softening in a number of markets, including the deals market,” a spokeswoman for KPMG said.
“These conditions have impacted demand in certain areas, as some clients have chosen to pause or delay projects. We have therefore taken the difficult decision to put forward proposals to reduce our headcount in a small number of areas of our business.”
Deloitte is cutting 800 UK jobs and EY is trimming 150 in its financial services consulting business. In the US, job cuts among the Big Four have been more severe, with thousands set to be axed.