More Slashes in the Future as KPMG Cuts Jobs to Reduce Costs

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More Slashes in the Future as KPMG Cuts Jobs to Reduce Costs
Photo Credits - Sven Piper via Unsplash

As forecasts predict future challenges in the consulting market, KPMG cuts jobs due to decreased demand for their services. They aren’t the only ones experiencing this downturn, though, as their ‘Big Four’ rivals have faced similar difficult decisions. Delve into this article as we explore KPMG’s new layoffs, their previous cuts, and considerations for employers when making staff redundant.

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KPMG Cuts Jobs Amid Business Slowdown

KPMG is poised to slash an additional 200 jobs in a cost-reduction effort prompted by a business slowdown. The multinational accounting firm aims to achieve these reductions by merging departments and streamlining work practices.

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Both back-office and client-facing roles are expected to be affected as KPMG cuts jobs. Those impacted by the proposed cuts will undergo consultations this week, with departures scheduled by early October. If these cuts proceed, the UK workforce will see a 1.2% reduction.

A spokesperson from KPMG provided some insight into their decision. They said, “We are still operating in challenging market conditions, which is why we have made the difficult decision to consult on proposals to reduce our cost”. They added, “We will continue to support our people… We remain a people business offering attractive and progressive roles”.

An Unwelcomed Trend As KPMG Cuts Jobs

Unfortunately, as KPMG cuts jobs, their decision is part of a broader trend among the Big Four consultancy firms, which collectively eliminated 1,800 positions in 2023. As mentioned, this downsizing is attributed to a slowdown in the consultancy market, which reportedly shrank by over 10%.

Additionally, in April, KPMG rescinded several job offers to foreign graduates. This came after legislative changes rendered the previously offered salaries non-compliant with immigration rules. The following month, Deloitte followed suit, taking similar action.

How Employers Can Effectively Manage Staff Redundancies: A Guide to Fair Practices and Legal Compliance

Given the plans of KPMG to cut jobs, it’s essential to highlight the significance of how employers manage staff redundancies. The first step an employer must take is to determine whether a genuine redundancy situation exists.

Even if a redundancy situation is identified, employers should explore alternatives to avoid redundancies where possible. This might include considering suitable alternative employment, negotiating pay cuts, or implementing job-sharing arrangements. If they remain unavoidable, employers could invite the workforce to volunteer for redundancy.

KPMG Cuts Jobs: Questions for Employers during Staff Redundancies:
1. Is there a redundancy situation?
2. Are there any alternatives to redundancy?
3. Have those at risk been informed?
4. Was the selection process fair, transparent and objective?
5. Have those selected for redundancy been consulted?

To prevent claims of unfair dismissal, employers should clearly identify which employees are at risk of redundancy from the outset. This includes those who perform similar work in areas of the business where a reduction is deemed necessary.

When selecting employees for redundancy, the employer must follow a fair, transparent, and objective process. This process must comply with legal requirements and be free from discrimination, avoiding decisions based on protected characteristics. To foster a positive relationship with the workforce, employers may consider consulting with employees on the selection process. Criteria for selection might include qualifications, experience, and length of service.

READ: Employees are Being Asked to Opt for Voluntary Redundancy at IBM- is this the New Way Forward?

Once employees have been selected for redundancy, employers must consult with them to explain the decision. Throughout the process, employers must continue to adhere to legal obligations, ensuring employees receive any rights to which they are entitled. This can include redundancy pay and time off to seek alternative employment.

Handling redundancies with care and fairness not only helps protect the business from legal claims but also maintains morale and trust among remaining employees. By prioritising transparent communication, fair selection criteria, and adherence to legal standards, employers can more effectively navigate the challenging process of redundancies.

Have you been made Redundant?

As KPMG cuts jobs, employers across the UK could be making similar decisions. If you have been made redundant and have any questions or believe it was unfair, contact Redmans Solicitors now. With years of industry experience, they can provide specialist employment law advice. Should you be eligible, they could also navigate you through the legal procedures.

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