[Updated with additional information.]

Two days before the start of KPMG’s 2021 fiscal year, massive layoffs unfortunately occurred at the firm on Tuesday. We received confirmation that 1,400 people, less than 4% of KPMG’s workforce, would be notified this afternoon that they no longer have a job with the firm.

In a statement to Going Concern, KPMG said:

“The firm has proactively managed through the pandemic and economic downturn by reducing our operating costs, prioritizing investments, and positioning ourselves for the future. While our business fundamentals are strong and we continue to be optimistic about the future, we must also be realistic about the uncertainty that exists in the marketplace. For that reason, we are taking prudent action to better align our resources with client needs and demand. These are incredibly difficult decisions that impact people’s lives. We are leading with our values and showing empathy toward all of our colleagues as we continue to deliver with quality and excellence in FY21 and beyond.”

Heads of each service line at KPMG had a mandatory call with employees at 12:30 p.m. ET when the bad news was delivered.

Here’s how many people are being let go by service line, according to sources:

  • Advisory: 396
  • Audit: 189
  • Tax: 194 (another source said 4% of headcount)

In addition, we were told that 125 KPMGers in tax have to take a comp reduction.

The other 620 or so employees who are being laid off are non-client-facing employees, sources say.

A KPMGer in advisory told us that the firm mentioned severance and placement services but provided no other details.

According to sources, all affected employees would have received a calendar invite for a meeting with an office leader and HR within two hours of the call’s completion, so those impacted would have received the bad news earlier this afternoon.

We’ll update this article as we receive more information. Good luck to all those affected.

[UPDATE] Haven’t been able to confirm this yet with a KPMG employee who was let go today but someone identified as a KPMG employee on Fishbowl posted “severance is four weeks pay (or more depending on length of service, PTO pay out) and then the offer to take 10% of base pay if you sign an NDA.”

If anyone can confirm the severance package with us, shoot us an email or text us on the tipline using the contact information below.

Related articles:

Layoff Watch ’20: Some KPMG IT Folks Were Told Their Services Are No Longer Needed
Layoff Watch ’20: About 40 People In KPMG’s Marketing Department Got Some Bad News to Start the Week
Layoff Watch ’20: KPMG Executive Assistants Were Given an Ultimatum This Week

The post Layoff Watch ’20: It’s Pink Slip Day at KPMG appeared first on Going Concern.

By admin