Staff were told last week that 10% of the 200-strong group - that specialises in fraud investigations and expert witness work - would have to go.

The move came just six weeks after Adam Bates took over as head of the practice, and is a double blow to the firm which has also lost forensic partner, Phil Haberman, to rival Ernst & Young.

A KPMG spokesman confirmed the job cuts but said the number of losses had not been agreed.

He said: 'It is a changing business that needs to get in the kind of people who can meet the demands of our clients.'

The job losses were announced at a difficult time for the firm - earlier in the year it was forced to cut 200 employees in its tax practice.

Other firms reported that their forensic businesses was booming and had no plans to make any job cuts.