KPMG UK Cuts Advisory Staff Amid AI Industry Shifts

KPMG UK is laying off approximately 4% of its Advisory division staff, specifically targeting teams within AI, Cyber, SAP, and Testing, as first reported by The Register. According to the outlet, these cuts were announced internally in July, with affected employees scheduled to depart next month.

This move follows a broader trend of consulting firms restructuring to address AI-driven industry disruptions. The Register notes that PwC UK implemented similar plans in April 2026 to merge two of its three advisory businesses. Duncan Aitchison, an analyst at TechMarketView, told The Register that KPMG's consulting business has faced prolonged pressure due to subdued market demand, estimating a 9% revenue decline between fiscal 2024 and 2025.

These reductions come six months after KPMG cut 600 roles across its UK organization, including roughly 120 in Advisory. A KPMG spokesperson stated the firm is adapting its focus and setup to ensure the right skills are in place to serve clients amidst evolving market dynamics and low attrition.

Internal documents shared with The Register reveal a redundancy package based on age and years of service (capped at 20 years), removing the £751 statutory weekly pay cap. The package guarantees either £1,250 plus statutory pay or eight weeks' pay, whichever is higher. One affected employee described the terms as "insulting and disgraceful," suggesting the reorganization is driven by a desire to protect profits for equity partners. The Register reports that KPMG's UK partners earned an average of £880,000 in the year ending September 2025.