KPMG scales back to survive

400 RETRENCHMENTS LIKELY, SOME OFFICES TO CLOSE From now on the embattled firm will be ‘focused on doing fewer things better’, says CEO.

KPMG International said yesterday the decision by its South African unit to retrench hundreds of workers and close down some offices was painful, but would help its embattled subsidiary to focus on restoring its tarnished reputation.

KPMG South Africa announced that up to 400 workers would lose their jobs as the audit firm plans to close certain regional offices, operate a refocused advisory business and scale back internal business support to reflect its reduced footprint.

KPMG said the leadership changes would involve embedding for an extended period a number of senior partners from across the international network into board and executive positions, as well as senior client service roles.

Bill Thomas, chairperson of KPMG International, said KPMG SA was an important part of the global firm.

“Today’s announcement to embed additional senior international partners into the South African leadership team is evidence of the significant investment KPMG International is providing to help ensure KPMG SA can continue to focus on trust, quality and integrity,” he said.

Nhlamu Dlomu, chief executive of KPMG SA, said the decisions to retrench and close some offices were necessary to put the firm on a more sustainable footing.

“We are putting quality and integrity at the heart of the business and, from now on, the firm will be focused on doing fewer things better.

“I am confident we have taken the right steps to reform and reshape the business. Now we need time for these to take hold,” said Dlomu.

“We are taking all possible