KPMG Australia has been busy doing some decluttering this year. First a “radical restructuring” that meant shunning a lot of the traditional advisory work — which has dried up of late anyway — and going all in on “tech-related advisory and software installation.” That move is supposed to save the firm $80 million AUD ($53.8 million USD), part of that coming from not having to pay the salaries of the 200 senior consultants and above it laid off. See: KPMG launches radical overhaul, cuts 200 senior jobs from AFR.
Now KPMG Australia is nuking its law practice. Fellow Americans reading this are probably like “KPMG has a law practice?” Well, it did. That’s a thing they’re allowed to do over there. It sounds like they finally arrived at the conclusion that’s fucking stupid and they should stick to what they know.
Writes Maxim Shanahan in Australian Financial Review:
The decision will cost dozens of jobs and marks the end of the big four consultancies’ ambitious attempt, launched at the peak of their influence, to take on established major law firms in traditional commercial practice areas.
KPMG Law’s Tax Controversy & Disputes practice will be incorporated into the firm’s tax division, but the big four firm will no longer operate its own distinct commercial law practice.
Ben Travers, head of the firm’s tax and legal division, said KPMG would now “look to further develop alliances with law firms that offer complementary services to ours, rather than invest in our own commercial law businesses”.
Sky News clip for the reading-averse:
The firm believes rolling the Tax Controversy & Disputes people into tax will work out much better than the separate law practice. “We have an ambition to be Australia’s leading firm in tax controversy and disputes,” said Ben Travers to AFR. “We believe focusing on [this area], and extending alliance relationships, will enable clients to better leverage broader capabilities to solve their issues.”
So who or what is next to go at KPMG Australia? Fiscal ’24 revenue is due to come out in August, wouldn’t be surprised if another significant slashing comes immediately after.
KPMG axes legal division, dozens of jobs to go [Australia Financial Review]
Related reading: The Reemergence of the Big Four in Law [Harvard Law School’s The Practice, 2016]