KPMG lays off 4% of its advisory team over slowing demand

KPMG is laying off 4% of its advisory team, according to a report. The reduction is attributed to slowing demand for advisory services. The layoffs primarily affect consultants in regulatory risk advisory, customer operations, and financial services. KPMG is simultaneously hiring in AI, cybersecurity, and managed services. This indicates a reallocation of resources toward growing areas of demand.

The 4% figure represents a small but significant portion of the advisory workforce. The company has not specified the exact number of employees affected, but given the size of KPMG's advisory practice, the layoffs likely number in the hundreds or thousands. The cuts are part of a broader pattern among consulting firms adjusting to changing market conditions. KPMG's continued hiring in AI and cybersecurity suggests a strategic pivot toward technology-driven services.

The slowdown in demand for advisory services, particularly in regulatory risk and financial services consulting, reflects broader economic trends. Clients may be reducing spending on discretionary consulting work. Meanwhile, the investment in AI and cybersecurity aligns with growing client needs in these areas. KPMG's move mirrors actions by other professional services firms that have also adjusted headcount in response to shifting demand. The company has not provided further details on the timeline or specific impact on individual roles.