KPMG UK Job Cuts: A Shameful Disregard for Employees
KPMG UK has let go of personnel from the Tech and Data sectors within their Advisory division, offering severance packages that one unhappy employee described as “shameful and offensive.” Approximately 4% of Advisory personnel are facing layoffs, with the decision impacting those in AI, Cyber, SAP, and Testing teams next month. Insiders have disclosed to GadgetLad the specifics of these meager payouts.
The Severance Package Details
The suggested redundancy offer, subject to consultations and the signing of a settlement agreement, combines statutory redundancy pay with some additional perks. The document provides useful advice to calculate the weekly pay by dividing the annual salary by 52. The number of weeks you receive is contingent on your age for each complete year of service: half a week’s pay for each year under 22, one week’s pay between ages 22 and 40, and 1.5 weeks’ pay for each year after becoming 41. “If you turned 41 during your tenure here, the higher rate of 1.5 weeks’ pay only applies for the full year following,” states the KPMG memo. “Redundancy pay is determined by your service years, capped at a maximum of 20 years. If your tenure exceeds that, only the last 20 years will be considered.”
How Does the Pay Structure Compare?
KPMG has canceled the statutory weekly pay cap of £751 and is recognizing partial service years up to six months. Regardless of tenure, employees are entitled to either £1,250 plus statutory redundancy or eight weeks’ pay including statutory redundancy, whichever is greater. The agreement also includes compensation in lieu of notice, pension contributions, and, where applicable, a vehicle allowance.
A Reality Check
The document outlining the package includes illustrations of three employees with examples of their possible payouts. Two appear unexpectedly pleased, but actual employees on the ground express dissatisfaction. One worker cynically suggested that “protecting the profit margins for the equity partners is the primary motive behind this restructuring.” In the previous year leading to September 2025, KPMG’s UK partners earned an average of £880,000. “The payout scale is offensive and disgraceful,” expressed one frustrated employee to GadgetLad.
KPMG’s Weak Rationalization
A representative from KPMG stated: “As the market changes, we’re adjusting our focus and structure to ensure we possess the right skills to serve our clients effectively. In response to market fluctuations and low attrition rates, we’re proposing reductions in certain advisory client-facing teams, and we will assist our colleagues throughout this transition.” These job cuts follow just six months after KPMG eliminated 600 positions across the UK, including around 120 in Advisory.
The Larger Context
“The consulting sector has been facing challenges for some time due to insufficient market demand,” noted Duncan Aitchison from TechMarketView, highlighting that the division’s revenue decreased by 9% between 2024 and 2025. “KPMG isn’t the only Big Four firm attempting to reshape its consulting division. In April 2026, PwC UK announced plans to merge two of its three advisory businesses as part of a global initiative to address the disruptions caused by AI in the consulting industry.”
Conclusion
When Technology Faces Dismissal: Severance Missteps
It’s a tough situation for KPMG tech employees facing dismissal with a severance package that feels more like a slap in the face than a proper goodbye. As the market evolves and the Big Four rush to adapt, it’s the workers who are left struggling while the partners reap substantial rewards.
