New York, NY — Global accounting firm KPMG has laid off 195 employees from its U.S. audit division as part of an internal restructuring effort aimed at addressing low employee turnover and adjusting to changes in its core business operations.
The cuts, which affect just over 2% of KPMG’s U.S. audit workforce, were communicated to employees earlier this week, according to individuals familiar with the firm’s operations.
Audit Division Sees Targeted Reductions
The layoffs come as part of what the company described as a strategic review of its audit operations in response to evolving client demands and efficiency goals. KPMG officials noted that while the firm continues to grow in advisory and technology-related services, its audit practice has been undergoing modernization to integrate more automation and data analytics tools.
“We are providing severance, access to extended health benefits, and career transition services to affected employees,” KPMG said in a statement.
According to Bloomberg reporting, the firm has faced relatively low voluntary turnover compared to pre-pandemic years, resulting in a need to rebalance headcount across departments.
Broader Industry Context
KPMG’s move follows similar headcount adjustments at other major accounting firms, which have been re-evaluating staffing levels after a hiring surge in previous years. Industry analysts suggest that as audit processes become increasingly digitized, firms are shifting resources toward AI-driven data analysis, cybersecurity assurance, and ESG reporting services.
Experts say the decision reflects broader market forces rather than financial instability. Accounting firms, including the Big Four — Deloitte, PwC, EY, and KPMG — have all faced challenges aligning workforce size with demand following pandemic-era hiring expansions.
“This isn’t a sign of contraction, but recalibration,” one industry consultant noted. “Automation is transforming traditional audit work, and firms need to redeploy their talent toward technology-enabled areas.”
Support for Affected Employees
KPMG confirmed that those impacted by the layoffs will receive severance packages, extended health coverage, and career transition support. The firm also reaffirmed its commitment to maintaining audit quality and continuing investment in innovation across its assurance services.
The company emphasized that it remains focused on digital transformation, audit integrity, and long-term workforce sustainability.
“Our priority is to support our people while ensuring we are positioned for future growth,” the statement added.
Industry Outlook
Despite the workforce reductions, KPMG continues to expand in specialized service areas such as AI advisory, cybersecurity auditing, and sustainability assurance, signaling a shift toward technology-driven client solutions.
The firm, which employs thousands across the U.S., is expected to continue hiring in high-growth segments even as it streamlines traditional roles within the audit practice.
What do you think about KPMG’s restructuring move and its implications for the accounting industry’s future? Share your thoughts in the comments below.
