KPMG Engaged in Dual Challenges: Lilium M&A Process and Internal Layoffs

KPMG, one of the Big Four accounting firms, is currently involved in two significant developments that highlight the complexities of its operations. On one hand, KPMG has been appointed by Lilium N.V. (NASDAQ: LILM) to conduct a structured M&A process. This move follows the approval of insolvency filings for Lilium’s German subsidiaries by the local court of Weilheim. Despite the insolvency proceedings, Lilium continues to operate with over 1,000 employees working towards achieving key milestones, including the first manned flight of its all-electric jet. The M&A process is part of Lilium’s efforts to secure fresh investment and support its path to certification and entry into service.

On the other hand, KPMG is undergoing internal restructuring, which includes laying off approximately 330 employees, or nearly 4% of its U.S. audit workforce. This decision is part of KPMG’s strategy to align its workforce size, structure, and skills with market demands, particularly addressing the issue of low voluntary turnover rates. The layoffs will affect audit associates and managers but will not include partners. This move is not isolated, as KPMG has previously conducted layoffs, especially in the advisory side, due to slower revenue growth in certain services.

The layoffs reflect broader challenges in the accounting industry, where firms like KPMG, PwC, Deloitte, and EY have been adjusting their workforce in response to market conditions. The recent layoffs at KPMG follow similar actions by other Big Four firms, which have been trimming their workforces to better align with market demands and address issues such as offshoring and the impact of AI on job roles.

Despite these challenges, KPMG remains committed to investing in its people and growing its business with quality. The firm’s ongoing focus on aligning its workforce with market needs underscores its adaptability in a rapidly changing business environment.