Any day now the dismemberment of the global accounting/consulting giant KPMG starts in earnest with massive job cuts expected from its Australian business. But this will only be the beginning of changes that could leave the firm a shadow of its current form.
While all the focus has been on the jobs carnage about to be inflicted on its 10,000-strong workforce in the wake of the whistleblower scandal – around 1000 are expected to lose their jobs as its work orders evaporate – it is not the only major surgery on the slate.
The potential spin-off of its government business for a nominal sum could jettison an even larger number of staff and partners into a separate entity to try and save this business from extinction.
French group Capgemini has not denied reports it made a $1 offer for KPMG’s defence business, which has been rejected. That was in early June.
There were also whispers of KPMG looking to sell the business before the whistleblower scandal broke. KPMG has been thrown into turmoil after a whistleblower alleged the firm had shared data from blue-chip clients, including construction giant Lendlease, to win new business.
KPMG declined to comment on the potential sale, and it has said no decisions have been made on job cuts, but it has made clear that everything is on the table in the current environment.
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