Key facts
- KPMG and Deloitte are offering enhanced redundancy packages to UK staff.
- The packages go beyond legal minimums, with KPMG removing statutory caps on pay.
- KPMG is offering a minimum of eight weeks' basic salary.
- Deloitte offered packages equivalent to eight months' full pay.
- PwC has also conducted voluntary exits in its audit division.
- The firms are cutting headcount due to a slowdown in voluntary staff departures.
KPMG and Deloitte are offering UK staff significantly enhanced redundancy packages as they implement headcount reductions, a move prompted by a slowdown in the sector's typical annual staff turnover. The traditional 'attrition model', where 15-20% of staff leave each year, has been disrupted by a tight jobs market, forcing the Big Four accountancy firms to offer more attractive exit terms.
KPMG, which planned to cut over 500 roles in March across its auditing and advisory divisions, is providing affected employees with a minimum of eight weeks' basic salary. Crucially, the firm has waived the two-year minimum employment requirement for statutory redundancy pay (SRP) and removed the government's statutory cap of £751 per week, calculating payouts based on actual weekly salaries. The packages also include payment in lieu of notice where applicable, though full-year 2026 bonuses are not eligible.
Clare Brennan, an employment partner at Hunters Law, noted that such enhanced payments are often tied to settlement agreements, incentivizing employees to waive potential claims in exchange for higher compensation than statutory entitlements. However, some long-serving KPMG staff reportedly expressed dissatisfaction, feeling that junior employees received packages comparable to those of more senior, long-serving colleagues.
Deloitte, in June, offered voluntary redundancy packages to nearly 200 audit roles, including managers and assistant managers. These packages are understood to be highly generous, with some reportedly amounting to eight months of full pay. Employees accepting these terms were expected to leave by the end of July. PwC also recently reduced its audit division through a "small number of targeted voluntary exits."