Accountancy firm KPMG yesterday announced it is cutting its Bermuda workforce by nine due to the impact of "the unprecedented global economic situation".

In a statement yesterday, the company said the nine accountants being released today were all non-Bermudians.

"Each year KPMG experiences natural attrition as certain staff members seek employment opportunities in the private sector in Bermuda or move onto assignments in other countries," the statement reads.

"However, due to the unprecedented global economic situation, its impact on employment opportunities and the firm's anticipated growth, the firm has released nine non-Bermudian staff accountants from their contracts ahead of schedule.

"This reduction in staff will in no way impact the firm's level of client service or our Bermudian student programme."

The financial services sector has been badly hit worldwide by the economic downturn.

Accountancy firms have been hit by the decline in economic activity on the Island, notably the dramatic shrinkage in Bermuda's funds industry, whose net asset value fell by around $80 billion last year, according to Bermuda Monetary Authority figures.

Others in the financial sector known to have shed jobs in recent months include accountancy firm Ernst & Young, Butterfield Fulcrum Group, the Bank of Bermuda and XL Capital.

Apart from the jobs announced it is thought that many more positions have disappeared through expatriate workers not being replaced when their contracts expire and vacancies not being filled when employees leave.

KPMG's announcement came the day after Meyer-Franklin Travel announced six lay-offs.