KPMG is set to trim around 200 positions within its UK consulting arm, with a portion of these cuts touching artificial intelligence-related roles. This marks another round of workforce reductions for the Big Four accounting firm following a series of prior layoffs.

According to insiders, the proposed job cuts are concentrated within the data and technology division, representing roughly 4% of the total consulting headcount, spanning multiple teams such as AI and cybersecurity. Upon completion of the current consultation process, affected employees are expected to depart in October. Sources indicate that staff have been informed internally that the firm requires a "scale optimization" initiative within the impacted business areas.

This latest move comes just six months after KPMG UK identified nearly 600 positions as being at risk, including over 400 roles in the audit division and about 120 in consulting. At that time, a sluggish natural attrition rate combined with weak market demand compelled the firm to downsize its workforce.

Like its other three Big Four peers, KPMG's consulting business continues to face cooling demand. Following the boom in spending on professional services during the pandemic, the industry has slipped into an extended downturn, with the sluggish cycle lasting longer than firms initially anticipated. Meanwhile, the rapid proliferation of AI is prompting industry-wide reflection on how the technology might reshape business models within what has traditionally been a labor-intensive sector.