KPMG and EY have initiated a significant shift by demoting partners, signaling the potential end of the traditional job-for-life model in the accounting sector. This move comes amid broader concerns regarding the financial health of the Big Four firms, as they face challenges that may affect their bottom lines.
KPMG is reportedly cutting 10% of its U.S. audit partners after a voluntary-retirement initiative did not meet expectations. This downsizing reflects a troubling trend within the industry, suggesting that the pressures at the top could lead to vulnerabilities throughout the organization.