Big 4 Layoffs in 2025 | KPMG, Deloitte, EY & PwC Job Cuts

Big 4 layoffs 2025 – KPMG, Deloitte, EY, and PwC job cuts illustration with logos of the firms.

The big 4 layoffs of 2025 have emerged as a defining moment for the global accounting profession. Deloitte, EY, KPMG, and PwC, collectively known as the Big Four, have each announced substantial workforce reductions in recent months of 2025. 

Together, these firms employ hundreds of thousands of professionals worldwide, yet they are now navigating a complex operating environment shaped by shifting client expectations, heightened cost pressures, and broader economic uncertainty.

These developments are not isolated occurrences but part of a wider recalibration across the professional services sector. Historically low attrition rates, combined with advances in automation and artificial intelligence, are prompting the largest accounting firms to realign staffing models and redeploy resources. 

In this context, the big four layoffs illustrate how even the most established market leaders must adapt quickly to safeguard long-term competitiveness and operational efficiency.

Detailed Breakdown of Big Four Layoffs

PwC Layoffs 2025

In May 2025, Price waterhouse Coopers (PwC) initiated a significant workforce reduction, cutting approximately 1,500 positions across its U.S. operations, equivalent to 2% of its 75,000-person workforce.

The majority of the affected roles were in the audit and tax divisions, with the firm citing historically low employee turnover as a key factor in creating staffing surpluses. This decision followed a period of strategic review aimed at aligning headcount with client demand, operational efficiency goals, and future growth priorities.

Less than a year earlier, in September 2024, PwC announced the elimination of approximately 1,800 jobs, or 2.5% of its U.S. workforce. That downsizing, the first of its scale since 2009, spanned multiple levels, from entry-level associates to managing directors, and impacted nearly half of its offshore roles. 

Taken together, the PwC layoffs 2025 and the prior reductions reflect the firm’s proactive approach to recalibrating its workforce in response to shifting market conditions and industry transformation.

Group of colleagues smiling and discussing together in a modern office setting.

PwC Layoffs – Key Takeaways:

  • Two consecutive cuts: Nearly 3,300 roles eliminated between September 2024 and May 2025.
  • First major reduction in over a decade: September 2024 marked the first large-scale headcount cut since the 2009 financial crisis.
  • Low attrition challenge: Unusually low voluntary turnover disrupted the firm’s natural workforce cycle.
  • Focus on efficiency: Layoffs concentrated in areas where automation and restructuring could deliver greater cost savings.

KPMG’s Audit Workforce Cuts

In November 2024, KPMG announced plans to lay off approximately 330 employees, representing nearly 4% of its U.S. audit workforce of about 9,000 professionals. 

The decision was largely attributed to unusually low voluntary turnover, which led to an oversupply of staff in certain service lines. This move underscores the challenges faced by professional services firms in balancing staffing levels with fluctuating market demand, particularly when attrition trends shift.

The firm framed the KPMG layoffs as part of a broader strategy to align its workforce size, skill mix, and geographic footprint with current and anticipated business needs. 

While KPMG has not disclosed the specific locations most affected, industry observers note that such workforce adjustments are often driven by evolving client demands, cost management priorities, and the integration of technology into audit processes.

Key Details on KPMG’s Layoffs:

  • Scale of cuts: Approximately 330 audit positions have been eliminated, representing about 4% of the U.S. workforce. Audit workforce (~9,000 employees).
  • Who’s affected: Primarily associates and junior managers; senior partners remain unaffected.
  • Reason: Exceptionally low attrition rates, staffing levels had swelled during the pandemic, and fewer voluntary departures created surplus capacity.
  • Financial backdrop: The U.S. audit division generated $3.7 billion in revenue in 2023, a 6% increase from the previous year, indicating that the layoffs were not driven by falling revenues.
  • Industry context: While other Big Four cuts targeted advisory teams, KPMG’s move stands out for trimming audit roles despite strong business performance.

Deloitte UK’s Advisory Business Reductions

Deloitte layoffs 2025 in the UK have made headlines, with up to 180 roles at risk within its advisory business. 

The firm cited a continued slowdown in the demand for consulting services, as corporate clients increasingly prioritise cost optimisation over expansive transformation projects.

These reductions follow previous workforce adjustments: in October 2024, Deloitte placed up to 250 jobs at risk, and in September 2024, as many as 800 roles, primarily in the consulting division, were flagged for possible cuts. 

Together, these moves highlight Deloitte’s strategic push to maintain profitability while adapting to softer market conditions in the UK consulting sector.

Key Insights into Deloitte’s Advisory Cuts:

  • Roles affected: Up to 180 positions within the advisory division were impacted by the cuts.
  • Prior reductions: October 2024 (≈250 jobs at risk) and September 2024 (≈800 jobs at risk).
  • Cause: Sluggish demand for large-scale consultancy projects.
  • Sector impact: Reflects a broader slowdown across major consultancy firms in the UK

EY Reshapes Global Workforce Amid Market Shifts

In line with other accounting layoffs 2025, EY layoffs have been implemented across multiple regions to adapt to evolving market conditions and shifting client priorities. While the exact numbers vary by location, the initiative is part of a global restructuring aimed at increasing operational efficiency and focusing resources on high-growth service lines.

This strategic pivot aligns with trends in the consulting market, where many clients are scaling back discretionary spending on large-scale projects. EY has been reallocating resources toward areas like sustainability consulting, technology integration, and regulatory compliance to capture emerging opportunities and offset declines in more traditional advisory work.

EY global approach 2025 infographic highlighting selective restructuring, regional variations, focus on high-growth areas, and global realignment.

Industry-Wide Trends in Professional Services

The Big 4 layoffs are part of a broader transformation within the professional services industry. Economic headwinds, changing client expectations, and rising operational costs are prompting firms to reassess talent deployment and service delivery models. 

Increased automation, AI integration, and shifting demand patterns are reshaping the skill sets needed across audit, tax, and advisory divisions.

The Big Four, employing hundreds of thousands globally, are leading this recalibration. By streamlining structures, investing in specialised talent, and targeting high-margin service lines, they aim to remain agile and competitive in a challenging business environment.

How Firms Can Prevent Future Workforce Disruption

  • Strategic Workforce Planning: Identify critical skills needed for the future and align hiring and training strategies accordingly.

  • Upskilling & Reskilling: Invest in continuous learning programs to equip employees with emerging skills like automation, data analytics, and ESG reporting.

  • Flexible Staffing Models: Use hybrid teams, contract staff, or project-based roles to manage workload fluctuations without large-scale layoffs.

  • Transparent Communication: Keep employees informed about business changes and workforce strategies to build trust and reduce uncertainty.

  • Employee Well-being Initiatives: Focus on mental health, engagement, and retention strategies to maintain morale during challenging periods.

  • Talent Diversification: Encourage cross-functional experience and career mobility to create a more adaptable workforce.

Conclusion

The recent wave of Big Four layoffs in 2025 underscores the fast-changing nature of the accounting profession. From the PwC layoffs 2025 to the Deloitte layoffs 2025, KPMG layoffs, and ey layoffs, these workforce adjustments reveal how even the largest market players must adapt to stay relevant. 

As the industry continues to evolve, those firms that align their talent strategies with emerging market opportunities, embrace innovation, and enhance operational efficiency will be best positioned to succeed.

Canada Scraps Digital Services Tax Act: Impact on US & Trade

Canada scraps Digital Services Tax Act - Impact on US and trade highlighted with a tax key on keyboard

In June 2024, the Canadian government passed Bill C-59, introducing a 3% digital services tax Canada aimed at large tech companies generating significant revenue from Canadian users. 

The tax, applied retroactively from January 2022, targeted revenues generated through digital advertising, online marketplaces, social media platforms, and the monetization of user data. First payments were scheduled for June 30, 2025, drawing immediate concern from U.S. policymakers and multinational firms.

By June 27, 2025, trade tensions escalated when President Trump announced a halt to U.S.-Canada trade negotiations over the Canada digital services tax. In response, Canada confirmed it would repeal the measure to resume discussions. Although the Canada DST was intended to ensure tax fairness in the digital economy, critics argued it disproportionately affected U.S. tech giants. Legislation to formally repeal the tax is anticipated during the Fall 2025 parliamentary session.

For businesses navigating evolving digital taxation policies, experience in outsourced tax preparation services and cross-border compliance is becoming essential. Strategic partners with deep knowledge in Canadian and U.S. tax frameworks help companies adapt faster, whether it’s interpreting regulatory shifts or optimizing reporting workflows.

Details of Canada’s Digital Services Tax including 3% rate, retroactive application, and revenue estimates

What Is the Canada DST?

The Canada digital services tax was enacted on 28 June 2024 through Bill C‑59, but it was designed to apply retroactively from 1 January 2022.
It targeted large digital service providers, including platforms involved in:

  • Online advertising
  • Social media services
  • Digital marketplaces
  • Licensing or sale of user data
  • The tax imposed a 3% levy on revenues sourced from Canadian users, applicable to companies meeting the following thresholds:
    • €750 million or more in global revenue, and
    • C$20 million or more in Canadian digital revenue
  • According to the Parliamentary Budget Officer, the Canada DST was projected to generate C$7.2 billion (~US$5 to 5.3 billion) over five years.

Why Was the DST Scrapped?

The Canada digital services tax faced immediate pushback from the United States, which argued the measure unfairly targeted American tech companies. The U.S. government filed a formal complaint under the USMCA, asserting that the tax was discriminatory and unfairly targeted American technology firms.

Former President Donald Trump threatened to suspend bilateral trade negotiations and impose retaliatory tariffs if Canada proceeded with collecting the tax. In response to mounting pressure, the Canadian government announced on June 30, 2025, just hours before the first payments were due, that it would repeal the DST. The repeal effectively reopened trade talks between the two countries, with a new deal now tentatively scheduled for July 21, 2025.

U.S. impact of Canada’s Digital Services Tax if enforced, showing risks like job losses, trade fallout, and tech company costs

Impact on the U.S. & Bilateral Trade

  • The now-repealed digital services tax Canada would have imposed a retroactive tax bill of US $2–3 billion on major U.S. tech firms, including Meta, Amazon, Google, and Netflix.
  • Additional annual costs associated with the tax were estimated between US $900 million and US $2.3 billion, potentially leading to thousands of job losses in the U.S. tech sector.
  • U.S. lawmakers criticized the Canada digital tax as a discriminatory and unilateral measure, urging action through trade mechanisms under the USMCA.
  • The DST also conflicted with ongoing efforts at the OECD to create a globally coordinated framework for digital taxation, undermining multilateral negotiations.
  • In response to the DST, the U.S. government threatened retaliatory tariffs and a suspension of trade talks, putting pressure on Canada to reverse the policy.
  • Canada’s decision to repeal the tax is seen as a strategic move to stabilize relations, leading to renewed discussions around lifting tariffs:
    • 50% duties on Canadian steel and aluminum
    • 25% tariffs on Canadian auto exports
  • The repeal represents a significant de-escalation in trade tensions, creating an opportunity for renewed cross-border collaboration and greater alignment on future digital tax reform efforts.

Canadian Perspectives on the DST Repeal

The Canadian government’s decision to withdraw the digital services tax Canada has elicited mixed responses from domestic stakeholders, reflecting a divide in perspectives on its economic and diplomatic implications.

Business associations across the country largely welcomed the repeal, warning that the tax could have driven up consumer prices, reduced competitiveness, and discouraged foreign digital investment. For many in the private sector, the move signaled a return to economic stability and a constructive step toward renewing cross-border trade relations with the United States.

At the same time, some policy experts and critics have expressed concern that the decision sets a troubling precedent. By backing down under pressure from the U.S., they argue, Canada may have weakened its negotiating leverage in future international economic discussions, particularly those concerning tech regulation, data sovereignty, and digital taxation frameworks.

What This Means for Canadian Businesses

  • The repeal of the digital services tax Canada removes an immediate compliance burden, but uncertainty around digital taxation remains, especially for companies earning revenue through online platforms or cross-border services.
  • Global tax frameworks are still evolving, particularly through the OECD’s Pillar One initiative, which could eventually replace unilateral DSTs with coordinated international rules.
  • Canadian businesses with digital operations or U.S. clients must stay informed, as similar regulations may re-emerge under new international agreements or domestic tax reforms.
  • To remain competitive and compliant, companies should engage advisors with cross-border tax experience who can anticipate and adapt to changes in digital reporting obligations.
  • In a rapidly shifting regulatory environment, proactive planning and outsourced compliance support can help businesses mitigate risk and seize digital growth opportunities.

Conclusion

The repeal of the digital services tax Canada marks a pivotal moment in the country’s digital tax policy. While the move has diffused tensions with the United States and opened the door for renewed trade negotiations, it also highlights the delicate balance Canada must strike between asserting national fiscal policy and aligning with international frameworks. For Canadian businesses, this decision offers short-term clarity, but not long-term certainty.

As global conversations around digital taxation continue to evolve, companies engaged in cross-border digital activity must remain proactive. Aligning with experienced advisors and outsourcing partners will be key to staying compliant, competitive, and prepared for what comes next in Canada’s role within the global digital economy.