Move corporate plans from Canary Wharf headquarters
KPMG will cut wages for its partners by 11% to mitigate the impact of the coronavirus pandemic.
Financial services companies also hope to reduce many of their offices, including Canary Wharf headquarters.
KPMG today announced that its profits fell to £288 million, down 6% from £306 million the previous year.
The average wage for partners fell from £640,000 to £572,000 as employment protection remains a priority for Big Four accounting firms.
KPMG chose not to hit staff members during the pandemic and continued to hire at all levels of the business. The costs associated with moving UK staff to work from home have also hit the company’s balance sheet.
Before the lockdown came into effect, KPMG had experienced “single digits of growth.”
However, as the pandemic is at the expense of the UK economy, many of the company’s services, including consulting and transaction advisories, are currently in low demand.
The audit was the only division within the company to confirm that revenues had risen to £606 million, up 3% from the previous year.
Bil Michael, senior partner and chairman of KPMG, maintained a positive outlook while insisting on the company’s commitment to protecting staff.
“I’m more optimistic than I did two months ago, but I’m as careful as possible for my business and make sure my partners get hit harder than anyone else. That’s what our staff and our people do. It’s about happiness,” Michael said.
Partners from across the sector are making similar pay cuts amid Covid’s slowdown.
In September 2020, partner salaries at Deloitte fell 17% despite a 10% increase in revenue. The PWC announced that its partners will take a 10% wage cut towards the tail end last year.
