corporate

Malaysian ops not affected by KPMG's lay-offs in US

KUALA LUMPUR: KPMG Malaysia has said that its operations remain unaffected despite recent layoffs in the United States (US).

KPMG is letting go of around 330 employees, about 4.0 per cent of its 9,000-person audit workforce in the US, to address reduced voluntary turnover. The affected roles are primarily associates and managers, with no partners impacted.

The firm last week notified the employees that they would be let go in the coming weeks, according to wires, quoting people familiar with the matter.

These cuts primarily impact associates and managers, with no partners included, the report said.

This move follows previous layoffs in the U.S., including a round in March focused on audit roles and a larger cut over the summer, when about 5.0 per cent of the U.S. staff were let go across advisory, tax, and back-office positions.

When contacted by Business Times, KPMG Malaysia said it could not comment on U.S. developments, emphasising instead that it's "business as usual" in Malaysia.

The Malaysian firm did not confirm nor deny the possibility of future staff layoffs.

The Big Four accounting firms, including KPMG, Ernst & Young, Deloitte and PricewaterhouseCoopers (PwC) have seen reduced turnover following aggressive hiring during the pandemic, which has now led to layoffs across various advisory functions as corporate clients pull back on certain services.

PwC's U.S. unit also recently laid off about 1,800 employees, some of whom worked in audit.

KPMG has a presence in more than 143 countries and territories with over 273,000 partners and employees

The accounting firm had planned to cut about 100 jobs in its deal advisory business in the UK, a source told Reuters in October 2023.

KPMG's global audit revenue rose by 6.0 per cent to US$12.6 billion for the fiscal year ending Sept 30, 2023.

The firm hasn't yet reported global revenue for its 2024 fiscal year.

Auditors reportedly are facing a threat from their firm's increased use of artificial intelligence (AI).

While AI advancements could provide opportunities to gain new skills for auditors who continue working at the firms, the technology may reduce how many of them are needed.

According to Source Global Research, 59 per cent of companies in the U.S. and U.K. anticipate that AI will reduce the need for college graduates in auditing.

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