KPMG layoff 1400 people including 400 advisory
Wonder if this is just the beginning of layoffs for other companies...
https://www.goingconcern.com/layoff-watch-20-its-pink-slip-day-at-kpmg/
Per article...
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’ve been 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.
Aah wow. I guess because they employ so many the figure looks small (in relative sense). Wouldn’t be surprised if more firms follow suit soon-ish.
So far I am aware of Blair, NatWest, Cantor Fitzgerald, HSBC, DB, SocGen, Nomura. Heard a rumour about Baird. Know for a fact Stifel LDN had more or less their entire Industrials team go.
Baird cut, not a rumor. Buddy works there.
Any news/media source? :)
houlihan as well
Source on HL?
source is my multiple unemployed friends
I remember when my accounting professors used to say audit and tax were “safe jobs.” Just an overall wow, I know Deloitte had a lot of layoffs around June. Wonder if/when EY and PWC will follow
Wait, what? Had no clue about Deloitte...
They typically are. This layoff (~4% of workforce in audit/tax) was likely due to lower turnover due to industry hiring going down due to covid 19 recession. Just like consulting/IB, there needs to be a certain level of attrition every year otherwise the organization starts to become too top heavy in comp (which affects the partners mid-six/7 figure yearly distributions depending on tenure). I bet this layoffs is disproportionally affecting managers/senior managers.
This shouldn’t be all that surprising. Firms trim the fat every few years and covid-19 is a built in excuse that will cause little to no questions.
No questions about Covid-19 having provided additional “context” for this to happen. Won’t be surprised if banks join in soon. Especially MM shops with no balance sheet and/or RX.
Majority of the cuts are at admins level and underperformers that would have been cut during normal times. This isn't as crazy as some people make it out to be.
Does it affect new hires who won't start until next yr? I know a few of them. Hope not. My guess is no as they still need a new bench.
You always want to have some circulation in you labor force to try your hand at recruiting superstars.
New hires are safe. KPMG is just trimming the fat, the firm typically has churn of about 1k-2k people who leave for other opportunities or underperformance but that obviously didn't happen this year so the firm is just churning out excess capacity.
That really doesn't seem like that much. Each of the B4 has tens of thousands (I think Deloitte has >100k) of US-based employees. Assuming 1,400 people is an accurate sum, 4% of headcount also sounds about right (since that = 35k total US-based employees). Probably getting rid of a bunch of people who would probably have left anyway in any "normal" year.
Deloitte is a monster. As of 2019, 312k employed.
The others:
PWC 276k
EY: 270k
KPMG: 219k
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