RSM US, a leading mid-market accounting and consulting firm, announced on Friday that it has laid off 3% of its workforce. The cuts, amounting to approximately 240 jobs, primarily impacted the firm’s consulting division, including teams working on Dynamics 365, risk consulting, and management consulting.

An internal source revealed that the consulting practice was informed of the layoffs during a virtual meeting with the practice leader. The decision was driven by a difficult six-month period during which the firm’s numbers fell significantly short of forecasts. In response, RSM has adjusted its staffing to better align with client demand.

A spokesperson for RSM confirmed the layoffs, stating that the reductions were necessary to match staffing levels with current and anticipated service demand.

These layoffs at RSM follow similar actions by other major firms, including PwC US, which recently announced plans to cut 1,800 jobs, or 2.5% of its workforce. The broader industry has seen job cuts across the Big Four accountancies in 2023, largely due to slowing demand for consulting services.