Big Four firm KPMG came in at No. 4 on NJBIZ Lists most-recent Accounting Firms ranking with nearly 300 CPAs located in its Short Hills office. But, that standing could shrink following news that cuts are coming to the company’s workforce.
KPMG will slash approximately 2% of its U.S. staff, close to 700 people, according to a report from Financial Times. The publication said the move was announced internally Feb. 15 by Carl Carande, vice chair of the multinational professional services network’s U.S. advisory business.
According to the Financial Times, the move will affect offices across the U.S. and KPMG’s consulting business, but does not include any partners.
“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,” a spokesperson for KPMG told NJBIZ in a statement. “We have reduced expenses and prioritized investments in those areas and remain confident in the future of our firm and these services. However, we are taking prudent actions to match our resources to the needs of the market today.”
Impacted colleagues will receive a package that includes severance, health care, emotional and well-being support, career counseling, and learning and development opportunities. KPMG did not disclose the number of Garden State employees who could be affected.
“We continue to make strategic investments for the future of our business and to deliver with quality and excellence in FY23 and beyond,” the statement added. “In these moments, we lead with our Values and are focused on supporting all of our colleagues.”
The firm posted total global revenues of $34.64 billion for Fiscal Year 2022, up 13% over the year prior. In the Americas region, those figures came in at $13.71 billion in revenue, marking 16% growth over 2021. Released in December, the financial update also highlighted a growth in global headcount that saw 29,000 net new positions created for an increase of 12.4% in the company’s employee ranks.
KPMG operates in 143 countries and territories, and collectively employed more than 265,000 partners and people last year.
The Big Four is rounded out by Deloitte, EY and PricewaterhouseCoopers, all of which maintain offices in the Garden State.