LONDON - One of the "Big Four" accountancy firms, KPMG, is letting go about 50 UK-based partners in a bid to improve its performance and respond to changing demand from its clients, Sky News reported on Thursday (Feb 25).
Sky News said that the KMPG's move was deemed "bold" in an industry "more accustomed to evolutionary than revolutionary change".
The number of partners will be reduced by about 8 per cent from some 630 to roughly 580. The streamlining has been under way for several weeks and is expected to continue for some time, said Sky News.
It said the redundancies form part of a push by Simon Collins, KPMG's UK chairman, and senior partners to overhaul the firm's operating model by investing in technology and other areas likely to deliver long-term benefits.
A source told Sky News there was broad support inside KPMG for the changes, with some of the exiting partners at or near retirement anyway.
Like its Big Four accounting rivals - Deloitte, EY and PricewaterhouseCoopers - KPMG is among the UK's biggest private sector employers. It fell to last place among the quartet after is earnings dropped to £383 million in the year to Sept 30.
Sky News said big accounting firms have seen an increase in the churn of their big audit clients because of new rules requiring listed companies to rotate their accountants.