KPMG is consolidating some of its global affiliates to reduce “the number of country units it operates globally,” per a Wall Street Journal report.
Quoting people familiar with the matter, the WSJ reported that the Big Four accounting firm aims to trim the number of country units to between 30 and 40 by the end of 2026. The move is intended to “retain workers and boost the quality of [KPMG’s] auditing services.”
When KPMG started the reduction effort in 2023, it had 120 units, the Journal reported. To date, KPMG has cut its country units down to around 75.
The reductions will mainly concern units making under $300 million in annual revenue, per WSJ.
Sources told the publication that smaller units “will particularly benefit from pooling their resources with other units in areas like technology or product investment for auditing, tax and consulting services.”
Last year, KPMG combined its UK and Swiss units. The Big Four firm has also merged some affiliates in the Middle East, per Bloomberg.
“Greater integration of our businesses brings a number of benefits to our clients, people and the capital markets,” Gary Wingrove, global chief operating officer at KPMG, said in a statement about the mergers.
KPMG isn’t the only firm analyzing its global structure. In 2023, Ernst & Young called off plans to split its audit and consulting arms.
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