KPMG’s Australian arm will shed around 200 staff from its consulting business as part of a comprehensive restructure, in a move expected to save it around $80 million a year.
The move is described by the big four firm as a reshape and simplification of its consulting division and will see it focus in on technology and software installation activity.
Around 200 roles will go as part of the pivot, which Business News understands is still in consultation with no clear picture on the Western Australian impact yet.
Those impacted will be informed over the next week.
KPMG national managing partner of consulting Paul Howes said the move represented a pivot in line with market demand.
“The traditional ways of working, and some of the legacy assessment and advice services our firm has offered the market are no longer in the same demand.
“We must now make a rapid, foundational shift to our business to adapt to this generational change.
“This is not about minor adjustments, but about flipping our business to have a strong focus on transformation – utilising emerging technologies, including AI.”
KPMG will rationalise its services and sectors to better reflect market needs and break down siloes.
The firm said it would reinvest the annualised savings of the move into digital solutions and new delivery methods.
Mr Howes said around 250 roles would be impacted in some way.
“Some teams will transition to other divisions of the firm, and we will be looking to redeploy and upskill as much as possible into areas of high demand, ensuring people with the right skills are in the right places,” he said.
“Regrettably, there will also be redundancies.”
The full strategy will be finalised in August, following a period of consultation.
The announcement comes a day after a report containing details of a federal committee’s inquiry into the relationship between the big four consulting firms – KPMG, PwC, EY and Deloitte – and government was tabled in Parliament.
The report, which came in the wake of the PwC tax leaks scandal last year, recommended greater transparency and procurement processes around government contracting with big four firms.
There is no suggestion today’s move is related to the findings of the committee’s report.