Why Is KPMG Cutting 10% of Its U.S. Audit Partners? VRS Failure Pushes CEO Tim Walsh to Restructure Division

The wave of layoffs sweeping across industries shows no signs of slowing down. From tech giants trimming teams to consulting firms quietly restructuring, job cuts are now hitting every level. The latest example comes from KPMG, which is set to cut around 10% of its U.S. audit partners- a rare move that puts even top-tier roles in the firing line.

Layoffs at the partner level are uncommon in the consulting world. These are senior professionals who often hold equity in the firm, making exits more complex than standard job cuts. According to The Wall Street Journal, roughly 100 partners are expected to leave, with some opting for early retirement while others are part of the firm’s restructuring plan.

The decision was communicated during an internal meeting where leadership said the size of the audit partnership had become misaligned with business needs.

VRS efforts didn’t work

Before taking this step, KPMG had spent years trying to reduce partner numbers through voluntary retirement schemes. However, these efforts did not see enough participation. As a result, the firm has now moved to direct cuts to bring down the size of its leadership pool.

The restructuring comes under US CEO Tim Walsh, who took charge about nine months ago and has since initiated changes within the audit division.

Audit business under pressure

KPMG’s audit division has often been seen as larger compared to competitors like Deloitte, EY, and PwC. Adjusting partner numbers is part of a wider effort to streamline operations and stay competitive.

The firm currently audits close to 10% of companies listed with U.S. regulators. While that shows steady growth, it still trails behind its Big Four peers.

What happens to exiting partners

Unlike regular layoffs, partner exits involve financial settlements. Partners typically have ownership stakes, meaning the firm must buy out their equity and provide additional compensation based on seniority.

KPMG has said that those leaving will receive financial packages along with support to transition into new roles, acknowledging their contribution to the firm.

Layoffs aren’t slowing down

KPMG’s move also comes amid fresh job cuts in the tech sector. Oracle recently carried out layoffs as part of its own restructuring efforts, adding to a growing list of companies reducing headcount in 2026.

Taken together, these developments point to a continuing trend: companies across sectors are tightening operations, and no role,  no matter how senior,  is completely safe from the ongoing wave of cuts.

Read More: Oracle Layoffs 2026: 700 Jobs Cut in California as Tech Giant Shifts Focus to AI Expansion