Accountancy firm KPMG plans to lay off 762 of its UK staff, about 7% of its UK workforce.

The firm has blamed the market downturn for its decision, which will bring the number of job cuts to about 1,000 this year.

A wave of accounting scandals has damaged confidence in corporate standards and particularly in the ability of auditors to police company reports, leading to a shake-up of the whole industry.

KPMG said up to 700 redundancies were planned in KPMG LLP (UK). with the remaining 62 job cuts will affect its associated law firm, KLegal.

KPMG has yet to offer details of where the axe would fall, though the tax and audit departments are expected to be hardest hit.

"The firm will offer voluntary redundancies and internal deployment where possible," the company said.

"Where compulsory redundancies are made, KPMG will invest internal resources to help those affected find new opportunities outside the firm."

In June, French firm Atos Origin bought the British and Dutch consulting arms of KPMG.