KPMG Layoffs: 5% job cuts amid economic pressures

What’s happening at KPMG?

KPMG is set to reduce its U.S. workforce by 5% in response to ongoing economic challenges and lower employee turnover. The company, which employed over 39,000 people across the U.S. as of September 30, 2022, will implement the layoffs through the remainder of its 2023 fiscal year.

• This marks the second round of cuts for KPMG this year, following a 2% reduction in February.

Official Statements and Context

In an emailed statement, KPMG emphasized the difficulty of the decision but highlighted its importance for the firm’s long-term health.

“We do not take this decision lightly. However, we believe it is in the best long-term interest of our firm and will position us for continued success into the future,” a company spokesperson said.

KPMG is not alone in these efforts. Earlier in the year, Ernst & Young cut 5% of its staff, while Deloitte has also been reported to have made similar reductions. The “Big Four” accounting firms, which include KPMG, Ernst & Young, Deloitte, and PricewaterhouseCoopers (PwC), have all been navigating a tough economic climate, with firms reducing headcount to mitigate the effects of what many anticipate could be a slowing economy.

Your rights

In Canada, non-unionized employees at KPMG are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The job cuts come amid a flurry of layoffs in 2024.

Big names, including Wells Fargo, Intuit, Goldman Sachs, UiPath, Dyson, Vancity, Stifel, SAP Canada, Netflix, AmDocs, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, and Telus, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.