The firm has announced a reshaping of the business to strengthen leadership capacity.
KPMG South Africa today announced that it is embarking on a reshaping exercise, following a strategic review of its activities and taking into account recent client losses and current levels of demand for certain services. The firm says it anticipates up to 400 people leaving as a result of its plan to close certain regional offices, operate a refocused advisory business, and scale back its internal business support to reflect the reduced footprint.
Nhlamulo Dlomu, CEO of KPMG South Africa, said:
“These hard decisions were necessary to put the firm on a more sustainable footing, while ensuring we continue to offer our clients the best service and support. 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 that we have taken the right steps to reform and reshape the business. Now we need time for these to take hold. It is a matter of great regret that, as a result, we will be parting company with loyal colleagues. We are taking all possible steps to ensure these changes are managed in a caring manner and that everyone is treated with dignity.”
Professor Wiseman Nkuhlu, chairman of KPMG South Africa and CFO South Africa Awards judge, said:
“Since becoming Chairman, my priorities have been to rebuild relationships with society and to reassure clients of our professional rigour and integrity. Today’s announcement, difficult but necessary, is part of our mission to restore KPMG’s reputation and honour its legacy of 130 years’ service in South Africa; to make it a firm that our people, our clients and the public can again be proud of. The steps we have taken will enable us to best service the needs of clients, make a broader contribution to society, while establishing the platform that will allow us to again earn the right to grow in South Africa.”
Going forward, the business will operate out of four hubs: Johannesburg, Cape Town, Durban, and Port Elizabeth. The firm says it will remain “a business of significant scale”, with more than 130 partners and 2,200 employees.
