The Big 4 accountancy firms are cutting jobs and scaling back their graduate recruitment programmes as they turn to artificial intelligence (AI) to do entry-level work, according to Louis Goss, writing in the Daily Telegraph.
Goss said hundreds of roles have been cut over the past two years as the Big 4 seek to maintain the ÂŁ1m partner pay-outs in the face of the downturn in the consultancy market.
The cuts mean hundreds fewer school leavers and university graduates joining the likes of KPMG, Deloitte’s, PwC and EY compared with 2023, as AI takes up many more tasks.
He explained that KPMG has made “some of the sharpest cuts so far”. Its recruitment scheme has been slashed by 29%, from 1,399 in 2023 to just 942 last year. Around 1,000 graduates and school leavers are expected to join the firm this year.
Deloitte has made an 18% cut in joiners, from 1,700 in 2023 to 1,400 in 2024. Graduate recruitment will be flat this year.
EY has cut its numbers by 11%, from 1,800 in 2023 to 1,600 in 2024; PwC cut entry-level recruitment from 1,600 to 1,500, a 6% drop.
Goss revealed the jobs board Indeed shows UK accountancy firms posted 44% fewer adverts for grad job this year, when compared with 2023.
The rise and rise of AI has coincided with an overall reduction of headcounts at the Big 4 firms. Both KPMG and PwC have reduced their total headcount in the UK the most – by 4% this year. And this follows sharp cuts in 2024.
Patrick Morgan’s James O’Dowd told the Daily Telegraph: “The Big 4 are looking at AI very seriously as they consider ways to use AI tools to replicate the work of juniors in a most cost-effective manner.”
Source Global Research’s CEO, Fiona Czerniawska, claimed: “AI is expected to substantially reduce the number of junior people in consulting firms.”
