KPMG tech cuts come with a severance sum some staff call insulting

KPMG UK is reducing its workforce in the Technology and Data sectors of its Advisory division, laying off approximately 4 percent of staff in the field. The redundancies, set to take effect next month, have prompted complaints from some affected employees who view the severance terms as "insulting and disgraceful." KPMG offers a combination of statutory redundancy pay and additional enhancements to departing staff, subject to consulting with the individual and signing a settlement agreement.

Compensation calculations factor in years of service, age, and whether the employee has completed more than half a year of service. Notably, KPMG's enhancements lift the statutory weekly pay cap of £751 and account for partial years of service exceeding six months. Employees receive either £1,250 plus statutory pay or eight weeks' pay, whichever is greater.

The package also includes employer pension contributions and, if applicable, a car allowance. While the illustrative examples of payouts in KPMG's offering document elicit smiles from some employees, the reality appears far less positive. A disgruntled worker claims the layoffs are driven by efforts to protect profits for equity partners, challenging the company's justification for the restructuring.

KPMG's UK partners earned an average of £880,000 in the year ending September 2025. The company's spokesperson cites the need to realign resources and skills to better serve clients as the rationale for the cuts, which come on the heels of a 600-person reduction in the UK organization six months ago. The consulting arm of KPMG has faced challenges due to subdued market demand, with TechMarketView analyst Duncan Aitchison estimating a 9 percent revenue decline between fiscal years 2024 and 2025.

KPMG is not alone in restructuring its consulting business; PwC UK announced similar plans in April 2026 to merge two advisory businesses as part of a broader response to industry disruptions caused by AI.