We got a tip this morning which we were able to confirm with two other sources that in an internal firm video we think was sent to employees last night, KPMG CEO Lynne Doughtie said protecting KPMGers during the crisis caused by the COVID-19 outbreak was her first priority and that layoffs would be an “absolute last resort.”
Our tipster told us:
KPMG just released an internal video message from Lynne Doughtie saying that the firm has no plans on layoffs or any reduction in force, and that while we are not going to meet financial targets for the year because of the COVID-19 crisis, getting rid of workers is not in the plans now and would be an absolute last resort.
She said cost cutting measures would need to be implemented, but made it seem like they were still in the process of analyzing the numbers so no plans for what those are would be made.
This matches with a now deleted partner post on the KPMG fishbowl where he said Lynne told a recent partner call that KPMG would not even be firing low performers in the middle of a health crisis.
Actually found the Fishbowl post. It had been deleted last night, but put back up:
The status of employee bonuses, raises, and promotions was not addressed during her video message, our sources said.
EY was the first of the Big 4 to cancel performance-based bonuses this fiscal year in an effort to avoid layoffs during the COVID-19 crisis.