KPMG UK is proposing to cut around 200 roles from its advisory business, with staff across its data and technology operations reportedly among those affected, as the firm adjusts its workforce to changing market demand and low employee attrition.
The proposed reduction represents around 4% of KPMG UK's advisory workforce, according to the Financial Times. Consultation with affected employees is underway, with those whose roles are ultimately removed expected to leave the firm in October.
The latest move comes as KPMG continues to reshape its UK workforce amid softer demand for consulting and deals work following the pandemic-era surge in professional services spending.
Market demand
KPMG confirmed the proposed reductions, pointing to changes in the market and the need to realign its workforce with client demand.
"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," the spokesperson said.
"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."
The firm has reportedly told affected employees that it needs to "right-size" capacity across the businesses involved.
KPMG's advisory division, which includes consulting and deals, recorded a 3% decline in revenue in the year to September 2025. Its Big Four rivals, including EY, PwC and Deloitte, have also reported contractions in their consulting businesses.
Wider restructuring
The latest proposals follow a series of workforce reductions at KPMG UK as the firm continues efforts to align its cost base with business demand.
KPMG's UK workforce now stands at around 15,800, down from 16,600 a year earlier and more than 17,000 during the Covid-19 pandemic.
Earlier restructuring also affected hundreds of roles across audit and advisory functions, while a separate proposal in July targeted positions within KPMG's corporate services division, including HR, corporate affairs, marketing, technology and procurement.
The latest reduction also comes as the professional services sector assesses the implications of faster AI adoption for traditionally labour-intensive consulting and advisory models.
KPMG UK is continuing the consultation process, with the final number of roles affected subject to its outcome.