KPMG and Deloitte have both offered improved severance terms to affected employees as firms across the sector respond to lower-than-normal staff turnover, with fewer workers leaving of their own accord in a tighter labour market.

The latest measures follow a series of job cuts across the Big Four this year. KPMG, Deloitte and PwC have together announced around 600 reductions in mid-level audit roles during 2026 as they look to align staffing levels with demand.

KPMG confirmed earlier this year that it would reduce more than 500 positions across its audit and advisory businesses, including around 440 assistant manager roles in audit and 120 advisory positions.

Employees affected by the restructuring were offered a minimum of eight weeks’ basic pay, including any statutory redundancy entitlement. The firm also removed the usual requirement for employees to have two years’ continuous service to qualify for redundancy pay and based calculations on employees’ full weekly salaries rather than the statutory capped amount.

The package also included payment in lieu of notice or garden leave where appropriate, although employees accepting redundancy were not eligible for a full-year 2026 bonus.

However, reports suggested some longer-serving KPMG employees felt the terms did not sufficiently reward length of service, with more junior staff receiving comparable packages.

KPMG said it improved its redundancy offer following consultation with affected employees, CityAM reports.

Meanwhile, Deloitte launched a voluntary redundancy programme affecting nearly 200 audit roles, including managers and assistant managers, representing less than three per cent of its audit and assurance practice.

Those choosing to leave were reportedly offered up to eight months’ full pay under the voluntary scheme, with applications closing earlier this month and departures expected before the end of July.

Under UK employment law, voluntary redundancies are treated as dismissals, meaning statutory redundancy rules still apply, although employers frequently enhance packages to encourage staff to participate.