Global auditor KPMG said on Monday it will lay off up to 400 people in South Africa, in its latest shake-up following a corruption scandal that saw it lose several major clients. The auditor has taken a number of steps since last September to help restore its reputation, including changes to corporate governance and management and measures to improve risk management.
KPMG plans to have just four business hubs in South Africa in Johannesburg, Cape Town, Durban and Port Elizabeth and close other regional offices, it said in a statement.
“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,” Nhlamulo Dlomu, chief executive of KPMG South Africa, said in a statement.
As part of plans to refocus the business, KPMG will appoint a number of senior KPMG partners from across its international network to the board and executive positions at its South African unit as well as to senior client service roles, it said.
“Today’s announcement to embed additional senior international partners into the South African leadership team is evidence of the significant investment KPMG International is providing to help ensure KPMG South Africa can continue to focus on trust, quality and integrity,” KPMG International Chairman Bill Thomas said.
KPMG in South Africa will have more than 130 partners and 2,200 employees, the company said, adding that it would continue to offer a wide range of the core services that its global, regional and local clients require.
