Audit Firms Implement Workforce Reductions Amid Market Challenges

In recent months, significant audit firms have undertaken significant reductions in labour in response to market conditions and strategic adjustments. KPMG, one of the four major accounting companies, announced its intention to reduce its U.S. audit staff by approximately 4%, corresponding to approximately 330 positions. This decision is intended to align the company’s staffing levels with current market requirements and to take into account historically low attrition rates.

Similarly, Deloitte UK has undertaken a number of job cuts within its advisory division, citing a difficult market environment. The company plans to abolish up to 180 positions, following the previous reduction of 800 consultancy positions in September 2023 and 100 in February 2024. These measures are part of a broader restructuring strategy to navigate the current economic landscape.

PricewaterhouseCoopers (PwC) has also undertaken work adjustments. In September 2024, PwC’s operations in the United States decreased by approximately 1,800 positions, representing approximately 2.5% of its workforce. This marked the company’s first formal layoffs since 2009, affecting several levels of partners to managers through vertical key services such as business services, audits and taxes.

Ernst & Young (EY) was not immune to these trends. The company has faced internal challenges, including the completion of dozens of US employees for online training protocol violations. This incident highlights the company’s commitment to maintaining evolving ethical standards in the industry.

These developments reflect a broader trend in the accounting and consulting sectors, where companies are reshaping their work strategies to adapt to market fluctuations, technological developments and changing customer needs. The integration of artificial intelligence and other technologies also influences staffing decisions, as companies seek to balance human experience with digital capacity to maintain a competitive advantage in a rapidly changing environment. Sources: