A multinational professional services network, and one of the Big Four accounting organizations, KPMG will sack 700 employees due to the economic slowdown of nearly 2 percent of its workforce in the United States.
Initially, The job cuts were announced on February 15 by Carl Carande, Vice-Chair of KPMG’s US advisory business. A spokesperson for KPMG said in an emailed statement to Reuters, “Our business and outlook remain strong.”
“However, we have experienced prolonged uncertainty affecting certain parts of our Advisory business that drove outsized growth in recent years,” the spokesperson added.
This is the first time one of the Big 4 is axing jobs even though many financial institutions and firms have been cutting jobs of late considering the stormy macroeconomic environment.
“2022 was a tale of two fintech markets. The variance between the first half of the year and the second highlights the rapid shift in investor sentiment amidst a combination of challenges — high inflation and rising interest rates, the lack of IPO exits, the downward pressure on valuations, and, of course, the turbulence in the crypto space,” said Anton Ruddenklau, Global Head of Financial Services Innovation and Fintech, KPMG International.
“But the news wasn’t all negative. Regtech, in particular, saw incredible investment in 2022, while seed-stage deals received excellent attention from investors after years of late-stage deals getting priority”, Anton Ruddenklau added.
In the year 2022, mass layoffs started with tech firms. Post that now the layoffs are affecting several others domains including financial companies that are reducing jobs in recent months. In 2022, there were 1,535 layoffs at tech companies 241,176 people were impacted.
As of 2023, there have been 472 layoffs at tech companies with 137,906 people impacted (on an average of 2,934 people per day).
However, multiple reports suggest that the layoffs are the result of overhiring during the COVID pandemic.