Accounting giant ‘cutting partnership by 50’
The ‘big four’ accounting firm KPMG is set to cut the size of its UK partnership by around 50, according to reports.
The accounting giant has declined to comment on Sky New’s report that a big shake-up is under way in a bid by the firm’s top bosses to improve performance and respond to changing demand from its clients.
The broadcaster said the process of streamlining its partnership, which will see the number of partners reduced from about 630 to roughly 580, is said to have been under way for several weeks and is expected to continue for some time.
The redundancies form part of a push by Simon Collins, KPMG’s UK chairman, and senior colleagues to overhaul the firm’s operating model by investing in technology and other areas likely to deliver long-term benefits.
The firm has invested significantly in its Enterprise division, aimed at winning more clients in the lower mid-market and helping it attract fast growth companies at an early stage in their life-cycle.
A source told Sky said there was broad support inside KPMG for the changes, with some of the exiting partners at or near retirement anyway.
The cut in the number of partners at KPMG follows a fall in profit to £383m in the year to 30 September, with a modest rise in revenue meaning it was overtaken by EY to become the smallest of the quartet.
The big four – Deloiite, EY, KPMG and PwC have seen an increase in the churn of their big audit clients because of new rules requiring listed companies to rotate their accountants.
