KPMG Freezes Pay Of 12,000 UK Employees Amidst Economic Slowdown
KPMG, one of the Big Four accounting firms, is said to have frozen pay for 12,000 of its UK employees. According to a Financial Times report, KPMG executives informed their employees that they would not receive a pay increase this year unless they were promoted.
Notably, the report comes just weeks after KPMG announced massive job cuts and pay freezes in its deals advisory arm in response to a prolonged slowdown in dealmaking.
According to the FT, bonuses will also be reduced, with employees in KPMG's 2,900-person tax and legal division receiving 55 per cent of the full amount that could have been paid.
The firm's graduate and apprenticeship employees will not be affected by the pay freeze.
The 12,000 figure includes employees who are eligible for raises because they will automatically be promoted to a higher pay band based on seniority without an official promotion.
However, because the pay freeze has now been extended beyond KPMG's deal advisory team to the entire firm, it suggests that units that are typically more resilient during an economic downturn, such as tax, have also been impacted by the difficult environment.
