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KPMG Australia To Let Go Of 200 Employees

KPMG

KPMG Australia will implement nearly 200 job cuts as part of an $80 million cost-cutting plan.

The company aims to revamp its consulting business, pivoting towards tech-related advisory and software installation.

Consulting leader Paul Howes said these changes are in response to a “fundamental shift in the market” away from traditional assessment and advice services on a global scale.

The job cuts, which will be finalized by the end of next week, represent about five percent of KPMG’s 4,000 advisory staff. 

This follows a reduction of 300 staff last year and additional cuts earlier this year. 

The layoffs will not affect anyone below the role of “senior consultant,” with around 50 affected employees to be redeployed within the firm.

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Howes said: “The era of generalist management consulting being standalone is over, and all consulting in the future will need to be tech-enabled.” 

Describing the year as “bumpy,” he emphasized the need for the firm to adapt to the changing market.

KPMG’s consulting division generates nearly $1 billion, or 40 percent of the firm’s estimated $2.5 billion revenue.

The unit will now focus on installing new computer systems and helping clients adapt to upgraded software. 

The cuts represent about five percent of KPMG’s 4,000 advisory staff

This includes installing and configuring systems from Microsoft, Salesforce, SAP, ServiceNow, and Oracle, as well as providing change management consulting.

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Howes highlighted the importance of organizational design and understanding working behaviors to improve communication within large companies. 

This shift aligns with the business model of Accenture, a global leader in tech-related consulting and outsourcing.

Deloitte, another Big Four consulting firm, has similarly emphasized its technology-related consulting division over general advisory work. 

KPMG aims to increase its tech-related consulting revenue from 40 to 60 percent and decrease its general assessment and advice services revenue from 60 to 30 percent, with the remaining 10 percent from outsourcing.

The end of COVID-19 and remediation booms, which fueled growth in the consulting sector, have driven this change. 

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