KPMG cuts 50 consulting jobs in New Zealand

KPMG has laid off nearly 50 employees in its New Zealand business as part of a restructuring effort within its consulting division.

Chief Executive Jason Doherty explained that the accounting and consulting firm has been gradually adapting its consulting services over the years but now faces a need for a more significant transformation.

“The needs of our clients and the consulting environment have evolved to the point where we must completely overhaul this part of our business. The time for gradual change is over; we need a transformation to ensure we’re prepared for the future,” said Doherty.

Last year, KPMG outlined a strategic roadmap for its consulting division extending to 2027. However, the rapid shifts in client demands and purchasing behaviors, both in New Zealand and internationally, have accelerated the need for change.

“As client expectations and buying patterns evolve faster than anticipated, we have to speed up our own transformation and reshape our consulting model. This will involve a stronger focus on our technology, digital, and business transformation services,” Doherty stated.

This restructuring has led to nearly 50 job losses, a decision Doherty described as the hardest aspect of the process. He assured that the company is committed to providing support to those affected and the broader team.

In New Zealand, KPMG has around 1,500 staff and a leadership team comprising just over 100 partners. The firm operates with offices in 7 cities.

The news comes months after fellow Big Four firm PwC also slashed 50 jobs in its Kiwi businesses, in response to falling demand for its government advisory business.

Meanwhile, New Zealand’s labor market continues to weaken, with unemployment climbing to 4.6% in the June quarter and projected to hit 5% by year-end. The Reserve Bank predicts unemployment will peak at 5.4% by mid-2024.