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KPMG UK is proposing about 200 redundancies—roughly 4% of its Advisory workforce—in data and technology teams, including AI, cybersecurity, SAP and Testing. The cuts are expected to take effect in October 2026 after consultation. Reports do not identify the technology and data executive said to be getting promoted, nor independently confirm that promotion.
What KPMG is cutting
The proposed reduction covers approximately 200 roles in KPMG UK’s Advisory data and technology division. The affected job families reported so far are artificial intelligence, cybersecurity, SAP and Testing. KPMG has described the proposal as a reduction in some client-facing advisory teams rather than a withdrawal from technology services as a whole.
On 1 October 2026, employees at risk were told that the collective consultation had formally concluded. The firm’s message said its original proposal was unchanged and that staff would receive an email on Friday 9 October between 11:00 and 11:30 confirming whether they had been selected for redundancy. Departures were expected during October after the consultation process.
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Scale of the proposal
| Measure | Reported figure |
|---|---|
| Proposed redundancies | About 200 roles |
| Share of KPMG Advisory staff | Roughly 4% |
| Named affected areas | AI, cybersecurity, SAP and Testing |
| Expected timing | October 2026, following consultation |
Why KPMG says it is reducing staff
KPMG said it is changing where it focuses and how it is organised to match the skills clients need. Its public explanation was: “As our market evolves, we are adapting where we are focusing and how we are set up to make sure we have the right skills in place to best serve our clients. To respond to these market dynamics combined with low levels of attrition, we are proposing reductions in some of our advisory client-facing teams and will support our colleagues throughout this process.”
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Demand and skills alignment
The explanation combines two factors: subdued market demand and low employee attrition. When fewer people leave voluntarily, a firm can reduce headcount only through a formal redundancy process if it believes its staffing profile no longer matches demand. Tech consulting is also being reshaped by AI-led changes in how software, testing and advisory work is delivered. That context helps explain why technology roles can be affected even while clients continue to invest in digital projects.
TechMarketView analyst Duncan Aitchison said KPMG’s consulting business had been under pressure for some time because market demand remained subdued. The statement does not establish that every affected role is being replaced by AI, or that the cuts are limited to one technology specialty.
What the reported redundancy package includes
The reported package combines statutory redundancy pay with enhancements. KPMG removed the £751 statutory weekly-pay cap when calculating the enhanced element, counted qualifying partial years of service and guaranteed a minimum outcome. The terms reported were:
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| Element | Reported term |
|---|---|
| Enhanced calculation | The £751 statutory weekly-pay cap was removed. |
| Length of service | Qualifying partial years were counted. |
| Minimum guarantee | Either £1,250 plus statutory redundancy pay or eight weeks’ pay inclusive of statutory redundancy pay, whichever was higher. |
| Pay in lieu of notice | Could include employer pension contributions and, where applicable, a car allowance. |
The Register also reported a separate offer of £100 in exchange for waiving certain contractual confidentiality and post-termination obligations, along with rights to appeal or bring claims. That payment is a rights-waiver consideration, not a replacement for the redundancy calculation. An affected employee described the payout scale as “insulting and disgraceful,” illustrating the dispute over whether the enhancement is adequate.
Did a KPMG technology boss get promoted?
The promotion is the unresolved part of the story. Available reporting on the UK redundancies does not name the executive described in the headline and does not verify that a KPMG technology and data boss was promoted while staff were being selected for redundancy. It is therefore not possible to identify the person or state that the promotion occurred as an established fact.
A separate US leadership announcement
KPMG’s US organisation separately announced that Todd Lohr would lead a new Client Technology & Innovation group from 1 October 2026. Steve Chase, vice chair and global head of AI & Digital Innovation, was due to retire on 30 September. That is a documented US leadership transition; it does not prove that the UK executive referenced in the headline received a promotion or that the two events are connected.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How this fits KPMG’s wider UK workforce changes
The technology and data proposal follows other reductions in KPMG UK. City AM reported that an earlier July 2026 round proposed cuts affecting about 10% of the UK group’s corporate-services staff, or around 200 roles. The July exercise and the October Advisory proposal involve different business areas, so their numbers should not be added together as one confirmed total without further company disclosure.
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| Indicator | Reported context |
|---|---|
| KPMG UK Advisory sales | Down 3% for the year to September 2025. |
| KPMG UK workforce | About 15,800, compared with 16,600 the previous year and more than 17,000 during the pandemic. |
| Average distributable profit per partner | £880,000, up 11% for the year to September 2025. |
| Earlier corporate-services proposal | About 200 roles, roughly 10% of that staff group, proposed in July 2026. |
These figures show why the announcement is contentious: the firm is reducing its UK workforce while reporting higher average distributable profit per partner. They do not, by themselves, show how the redundancy budget was set, which teams will ultimately remain, or whether further rounds are planned.
Quick Recap
What is known and what is not
- Established: KPMG UK proposed about 200 Advisory technology and data redundancies, affecting AI, cybersecurity, SAP and Testing, with consultation completed on 1 October 2026.
- Established: Staff were told when selection emails would arrive, and enhanced redundancy terms were reported, including removal of the £751 weekly-pay cap and a minimum guarantee.
- Reported but not independently detailed: A £100 offer was made for waivers covering specified contractual obligations and legal rights.
- Not established: The identity of the supposedly promoted UK boss, the details of any promotion, and a connection to the separate US leadership change.
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