Several weeks ago KPMG ordered all its US employees back to the office at least 3 days a week or they would be fired, soon it will be 5 days and employees can work at home on the weekends. This week KPMG said it’s firing 4% of the audit staff, managers and associates but no partners will be axed. The problem is the Big 4 over hired in 2022 & 2023 and now must cut back; at least in the US but not overseas: i.e., PWC also laid off 1800 workers in audit; again, no partners were let go. About the layoffs: KPMG released this BS: “these actions reflect our ongoing focus to align the size shape and skill of our workforce to the market.” Really this is an oxymoron as KPMG didn’t reconcile the firings with the fact that audit revenues rose 6%. Albeit partner compensation rose too. In other words, no steps have been taken to cut hours and raise pay for associates; although KPMG said it supported cutting the 150 hrs requirement. My advice to accounting majors is to go into tax at a small firm or else go into industry. There is a shortage of accountants in the US but not at the big 4. They’re “big” outsourcers; & the troubling thing to me is that the universities are funneling innocent students into a shrinking market segment. The small firms never have a chance to tell their story in the classroom because they aren’t invited
Several weeks ago KPMG ordered all its US employees back to the office at least 3 days a week or they would be fired, soon it will be 5 days and employees can work at home on the weekends. This week KPMG said it’s firing 4% of the audit staff, managers and associates but no partners will be axed. The problem is the Big 4 over hired in 2022 & 2023 and now must cut back; at least in the US but not overseas: i.e., PWC also laid off 1800 workers in audit; again, no partners were let go. About the layoffs: KPMG released this BS: “these actions reflect our ongoing focus to align the size shape and skill of our workforce to the market.” Really this is an oxymoron as KPMG didn’t reconcile the firings with the fact that audit revenues rose 6%. Albeit partner compensation rose too. In other words, no steps have been taken to cut hours and raise pay for associates; although KPMG said it supported cutting the 150 hrs requirement. My advice to accounting majors is to go into tax at a small firm or else go into industry. There is a shortage of accountants in the US but not at the big 4. They’re “big” outsourcers; & the troubling thing to me is that the universities are funneling innocent students into a shrinking market segment. The small firms never have a chance to tell their story in the classroom because they aren’t invited
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