KPMG and Deloitte are taking drastic measures to reduce their workforces, offering generous redundancy packages that exceed statutory minimums in an attempt to control expenses. As the job market remains highly competitive, both firms have seen fewer employees willing to leave voluntarily - a trend that's forcing them to re-evaluate their traditional 'attrition model'. Typically, 15-20 per cent of staff would depart each year; however, this year's figures are much lower, with only a handful choosing to go.
The Big Four accountancy firms have responded by increasing payouts to employees, in an effort to navigate the shift in market conditions. According to ONS labour market data, KPMG, Deloitte, and PwC have cumulatively cut around 600 middle-tier audit positions so far this year. This comes as part of broader efforts to streamline operations and adapt to current circumstances.
KPMG UK's announcement in March saw the firm plan to cut over 500 roles across auditing and advisory divisions - including 440 assistant manager positions in audit and 120 in advisory. Affected staff have been offered enhanced redundancy packages, with KPMG waiving the statutory cap on 'a week's pay' for redundancy calculations (£751) and instead basing payouts on actual weekly salaries. A minimum of eight weeks' basic salary has also been guaranteed to all affected individuals.
Deloitte implemented a voluntary redundancy programme in June, targeting nearly 200 audit roles. Sources suggest that up to 175 auditors, including managers and assistant managers, were affected - representing just a small fraction of its audit and assurance business. Deloitte reportedly offered a particularly attractive package, with up to eight months' full pay on offer to those accepting the deal by 10 July 2026.
Experts warn that enhanced redundancy payments often come with strings attached, as employees are incentivised to waive potential claims in exchange for significantly higher payments than their statutory entitlement. However, not all staff have been satisfied, with some long-serving KPMG employees expressing discontent over the similarity of packages offered to junior colleagues and those with more extensive tenure. PwC has also recently reduced its audit division through a limited number of targeted voluntary exits - a trend that's spreading across the sector.