KPMG SA To Cut 400 Jobs After Losing Key Clients

KPMG in South Africa said it will be cutting its workforce in the country by 400 in further show of how the business of the once giant is shrinking in the face of a disgraceful relationship with the Guptas . It has also suffered from the collapse state-owned mutual bank VBS both of which have prompted a number of JSE-listed companies to part ways with the auditor.

KPMG which announced the culling of jobs on its website early Monday said it intended to close “certain regional offices”, keeping four hubs in Johannesburg, Cape Town, Durban and Port Elizabeth. KPMG would still have 130 partners and 2,200 employees after its “reshaping”.

KPMG’s 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 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.