KPMG cuts 50 consulting roles

RNZ

25 Sep, 2024 03:39 AM2 mins to read

KPMG's Auckland office.

By Susan Edmunds at RNZ

KPMG has made almost 50 staff redundant as part of changes to the structure of its consulting business.

Chief executive Jason Doherty said it had been “progressively evolving” its consulting services for some years.

“The changing needs of our clients and of the consulting landscape means that we need to fundamentally reshape that part of our business - the time has come to move from evolution to transformation, to ensure this area of our business is fit for the future,” he said.

He said KPMG had last year outlined a plan for the consulting business to 2027 but clients’ requirements and buying patterns were changing more quickly than expected, in New Zealand and overseas.

“Given the pace of change in our clients’ requirements and buying behaviours, we need to accelerate our own change and reshape our consulting operating model to ensure we meet current client needs - and anticipate future demand. This will include greater emphasis on our technology, digital and business transformation capabilities,” he said.

He said the reshaping of operations had meant almost 50 redundancies were advised.

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“This aspect of our consulting transformation is by far the most difficult and we are focused on making sure that everyone impacted, and in our wider team, has the right support in place.”

New Zealand’s unemployment rate is increasing as the labour market softens under tight monetary policy conditions.

It reached 4.6% in the June quarter but has been forecast to reach 5% by the end of the year. The Reserve Bank expects it to peak at 5.4% by mid-next year.

Shannon Barlow, managing director of Frog Recruitment, said the job market was still tough for anyone who was looking for a new role.

“The market is still very slow but is starting to pick up gradually. The OCR announcement has been a real turning point psychologically. There’s a feeling that we must have been through the worst of it, there’s a dim little light at the end of the tunnel and it’s time to get on with things.

“So, it’s not going to be an easy thing to be on the job hunt, but they’re better off than would have been earlier in the year.”