KPMG is removing around 200 positions from its UK advisory operation, with roles in AI and cybersecurity among those affected, the Financial Times (FT) reported, citing people familiar with the matter.
The proposed reductions represent roughly 4% of the company’s advisory workforce.
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According to the report, employees whose posts are set to be eliminated will depart next month, subject to consultation.
Affected staff were told that KPMG needed to “right-size” capacity across the businesses involved, the people said.
The move follows a previous restructuring at KPMG when 600 roles were reportedly impacted.
That process included more than 400 audit positions and approximately 120 advisory roles, as slower demand and limited employee departures prompted the company to reduce headcount.
KPMG’s consulting activities have faced an extended decline in demand since the sharp increase in professional services spending during the pandemic.
Its ‘Big Four’ competitors have also encountered similar conditions.
At the same time, the faster deployment of AI has prompted questions about its effect on the sector’s labour-intensive operating model.
Revenue in KPMG’s advisory division, which covers consulting and deals work, declined by 3% in the year to September 2025.
EY, PricewaterhouseCoopers and Deloitte also reported contractions in their consulting businesses.
KPMG now employs approximately 15,800 people in the UK, down from 16,600 a year earlier and more than 17,000 during the Covid pandemic.
The latest proposed cuts form part of a wider cost-control effort led by KPMG UK senior partner Jon Holt.
A KPMG UK spokesperson was quoted by the FT as saying: “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.
“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.”
