KPMG is cutting roughly 10 percent of its US audit partners in a significant restructuring aimed at improving productivity and aligning leadership with business demand. The decision, revealed during an internal meeting, follows years of unsuccessful attempts to encourage senior partners to retire voluntarily, according to people familiar with the matter and reporting by Financial Times.
Firm leaders said the size of the audit partnership had become disproportionately large compared with current business levels, prompting the need for a more decisive intervention. The move will result in several dozen partners leaving the firm, although KPMG has not disclosed the exact number. Its latest transparency report indicates there are about 1,400 partners and managing directors in its US audit and assurance division.
The restructuring also reflects competitive pressures within the so-called Big Four accounting firms, which include Deloitte, EY, and PwC. KPMG’s audit partnership has been viewed internally as larger than those of its peers, adding urgency to efforts to streamline operations and improve performance.
The cuts come less than a year after Tim Walsh took over as chief executive of the US business and initiated leadership changes within the audit and assurance practice. The layoffs are part of a broader multiyear strategy to reshape the firm’s workforce, ensuring it has the right mix of skills and structure to meet evolving client needs and maintain confidence in capital markets.
KPMG stated that departing partners will receive financial packages and support for transitioning to new roles, acknowledging their contributions to the firm and its clients. The company also emphasized that its audit partner base remains strong and that it expects to bring in new talent over time as part of its long-term growth plans.
Despite being the smallest of the Big Four, KPMG has slightly increased its share of US-listed company audits, reaching 9.8 percent in 2025, up from 9.2 percent the previous year. However, leadership appears determined to address inefficiencies at the top level, particularly after a voluntary retirement scheme failed to reduce partner numbers as intended.
