KPMG to lay off 200 workers

ONE in 10 workers at accountancy giant KPMG are to lose their jobs.

Recently qualified accountants and support staff will make up the bulk of the 200 redundancies at the firm’s Irish operations, which employs 2,000 people.

It is also asking staff to take pay cuts of 5% to 10% — a 5% drop for those earning less than e35,000 while anyone above €35,000 will see their wages reduced by 10%.

KPMG is to push ahead with plans to hire 250 graduates this year and more next year, saying its trainee programme is critical to the firm’s future success.

Staff were informed yesterday of the measures, which take effect in May.

This announcement comes on the back of 2,000 staff at the Irish operations of Pricewaterhouse Coopers (PwC) being asked to take a 10% pay cut.

PWC said that it is not planning widespread redundancies and is putting measures in place, such as reduced working weeks, to prevent this happening.

“In common with many businesses in the present economic climate, including many professional services’ firms, the firm is seeking to ensure that the firm’s cost base and resources are balanced between current needs and anticipated future demand,” KPMG said in a statement.

None of the firm’s trainees will be made redundant and the company said that it will assist staff in securing employment at a KPMG office worldwide.

The firm said that it acknowledges the “significant contribution” of all of its people to its success and “fully appreciates” the impact of the measures on its employees.

“The firm has worked hard to minimise the number of redundancies and regrets having to take these measures — announced only after very careful consideration,” it said.