By Irina Anghel, Bloomberg News (TNS)

KPMG has frozen pay for thousands of its U.K. staff and cut bonuses despite stubbornly high inflation.

A spokesperson for the audit firm said that due to soft market demand, raises would be prioritized for staff who have been promoted. Workers eligible for a bonus will receive one that’s lower than in previous years.

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The business has about 17,000 staff in the U.K. including partners, who receive a share of profits. Graduates who are progressing as they pass exams won’t be affected by the pay freeze.

The so-called Big Four accountancy giants have been reining in costs to adapt to a tough macro environment, laying off hundreds of staff in the U.K. and cutting partner pay due to a slowdown in dealmaking.

The news was first reported by the Financial Times.

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