400 jobs on the line at KPMG

Some of the changes which will result in job losses at KPMG are triggered by loss of clients due to the auditing firm's association with the Gupta family.
Some of the changes which will result in job losses at KPMG are triggered by loss of clients due to the auditing firm's association with the Gupta family.
Image: Gallo Images / The Times / Alon Skuy

The head count of the South African business of KPMG is to be cut by 400 people‚ the auditing group said on its website on Monday morning.

KPMG said it intended to close “certain regional offices”‚ keeping four hubs in Johannesburg‚ Cape Town‚ Durban and Port Elizabeth. It said it would still have 130 partners and 2 200 employees following its “reshaping”. Its South African operations were reported to have 3‚400 employees at the end of September 2017.

The auditing group’s relationship with the Gupta family and more recently collapsed state-owned mutual bank VBS has prompted a string of JSE-listed companies to fire it.

“These changes follow a strategic review of the firm’s activities and take into account recent client losses and current levels of demand for certain services. They are the latest in a series of initiatives announced by the firm in recent months to support its drive to restore KPMG’s strength in SA‚” the company said in Monday’s statement.

X