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KPMG is an international company providing audit, tax and consulting services. As of September 2011, it is represented in more than 140 countries and has more than 140 thousand employees around the world.
Business in Russia and CIS
Main article: Kept - Cap (formerly KPMG)
History
2024: Dismissal of employees due to lack of money for staff
On June 1, 2024, it became known that the international audit company KPMG initiated a new stage of reorganization due to a lack of money for personnel. In order to reduce costs, the number of employees in the UK unit will be reduced.
The layoffs were reported by the Financial Times, citing information received from knowledgeable persons. KPMG, like other "Big Four" global auditors (Deloitte, PricewaterhouseCoopers, Ernst & Young), has faced a downturn in M&A activity as well as some other segments. This had a negative impact on the consulting business. In general, in Britain in this direction, growth slowed down by more than 10% on an annualized basis.
It is known that the cuts will affect the back office staff, as well as the customer relations group. In total, approximately 200 employees will lose their jobs. This decision was made after the "revision of the cost base." As part of the restructuring, the company will combine some of the functions previously assigned to individual workers and "reduce duplication" in its structure. It is planned to complete the reorganization by October 1, 2024.
 | Like other companies in our sector, we still operate in difficult market conditions, so we made a difficult decision to reduce the cost base by simplifying the corporate structure, "said KPMG representatives. |  |
According to Source Global Research, the British consulting market grew by only 4.7% in 2023 and reached a volume of 15.2 billion pounds sterling (approximately $19.24 billion at the exchange rate as of June 24, 2024). For comparison, in 2022, an increase was recorded at the level of 15.6%. In the future, analysts believe, the situation will deteriorate: by the end of 2024, the volume of the industry will remain unchanged.[1]
2023:5% U.S. jobs cut
On June 26, 2023, it became known that the international audit company KPMG decided to carry out a restructuring, during which the number of personnel will be reduced by about 5%.
According to the Financial Times, KPMG management notified employees of the upcoming changes through an email sent to the corporate network. The company faced a sharp decline in demand for consulting and other services in the context of the current macroeconomic situation and the crisis in the United States. This led to a deterioration in financial performance. Therefore, KPMG is forced to initiate a second round of layoffs in addition to the 2 per cent staff reduction that was carried out in February 2023.
| | While our range of opportunities is wide and we continue to lead the audit services market, we face economic headwinds that are not unique to our business or company, said KPMG chief executive Paul Knopp. | |
The layoffs will affect KPMG's US representative office. All departments will be affected, including the audit business, while during the previous round only the consulting segment was affected. In total, approximately 1950 employees will be laid off with a global staff of 39 thousand people. Reduced employees will receive cash compensation and other payments, as well as some support.
In addition, KPMG says the company has faced a significant decline in the number of workers who leave on their own accord. At the same time, the total number of employees is excessive for doing business in the formed market environment. It is planned to complete the dismissal program before the end of the fiscal year, which closes in September 2023.[2]
2022: Payment of $17.4 million for deceiving the regulator
On July 25, 2022, it was revealed that KPMG was hit with the biggest fine in the UK after it deliberately misled its regulator.
The fine of £14 million ($17.4 million) relates to the audit of Carillion, a bankrupt outsourcer, and Regenersis, an information technology company. The fine was imposed by the court, which concluded that KPMG provided false and misleading documents and information when the Financial Reporting Board (FRC) carried out routine audits of KPMG's audits of Carillion's 2016 and Regenersis's 2014 accounts.
There is an active separate investigation into how KPMG audited Carillion, which collapsed in 2018 after its accounting records were written off. The scandal has led to calls to reform accounting practices in the UK.
KPMG will also pay costs of almost £4m. She received a "severe reprimand" from the FRC, which also directed the company to appoint an "independent reviewer" to assess the "effectiveness" of KPMG's audit quality review procedures.
KPMG also admitted that the conduct of five employees, including Carillion audit partner Peter Meehan, amounted to misconduct. Their conduct included the creation of minutes of meetings and an audit working paper that were misleading.
Meehan was fined £250,000 and expelled from the Institute of Chartered Accountants of England and Wales for 10 years, which effectively means a ban on the profession. Three other employees were fined from 30 thousand to £45 thousand and suspended from work for seven to eight years. The fifth was severely reprimanded.
| | The court ruled: The seriousness of the misconduct that we have proved hardly needs to be explained. Effective audits are essential to the financial system. Management and investors should be able to rely on the company's audited financial statements. | |
| | John Holt, chief executive of KPMG UK, said: I fully agree with the court's findings and sanctions. The behaviour at the heart of this case was wrong and should never have happened. | |
| | We reported this to our regulator immediately upon discovery and fully cooperated with him during the investigation. Since then, we have worked hard and with full transparency with our regulator to ensure that the behaviour of individuals does not reflect the wider culture of the firm.[3] | |
2021
Purchase of Certus APAC consulting company helping to implement Oracle software
In early September 2021, KPMG bought Certus APAC, which specializes in consulting on MSPs and Oracle Cloud solutions. The financial terms of the transaction were not disclosed. Read more here.
Sale of Restructuring Services Division
In early May 2021, KPMG agreed to sell its UK restructuring business to HIG Europe. A little earlier, Deloitte sold its restructuring arm to the CVC Capital Partners-backed consultancy Teneo. In both cases, the transaction was aimed at eliminating alleged conflicts of interest, when firms have to audit and advise the same clients, which is fraught with serious violations of the law. Read more here.
Transition to a hybrid work schedule, investing $61 million in remote work technologies
In early May 2021, KPMG introduced a hybrid strategy to its employees, which includes remote work with four working days in the office. The company also intends to invest $61 million in remote work technologies and the creation of spaces for joint projects. What exactly these funds will go for is not specified.
The new flexible approach to office hours will allow KPMG employees, mainly working remotely, to allocate four "office" days for every two weeks, which can be used for joint projects and training.
In March 2021, KPMG management consulted with its employees, and most of them expressed their desire to continue working remotely. A large proportion of respondents (87%) reported that the road to work takes too long, which they would prefer to spend differently, and 76% noted that they like the flexibility of the work schedule when working from home.
| | We trust our people, "said KPMG chief executive Jon Holt. - Our new approach will empower our employees and allow them to plan their own work week. The pandemic has proven that the point is not where you work, but how you work. | |
KPMG followed the lead of US company Salesforce, which has also adopted a hybrid approach to work schedules, but not all major employers are ready to use this strategy. International bank Goldman Sachs is reportedly set to return its British employees to the office from mid-June. The company's chief executive recently described working from home as an "aberration." Other firms are still cautiously exploring the possibilities of a new approach, but so far they are not talking about long-term plans.[4]
2018: Employees fired for harassment
In December 2018, KPMG announced the dismissal or departure of seven employees of the British representative office at their own request. Their inappropriate behavior was expressed in humiliation of colleagues, sexual harassment, etc.
According to Anna Perches, head of the personnel department at KPMG, the company's policy "categorically prohibits all kinds of harassment, bullying and treting."
| | When our employees are victims of behavior that is contrary to this policy, or see its manifestations in relation to others, we support if they inform us about it, "she noted. | |
2010: Revenue exceeds $20 billion
In 2010, total revenue amounted to more than $20 billion.
1986: Establishing a company
The company was formed in 1986 by the merger of Peat Marwick and Klynveld Main Goerdeler.
Notes
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