Global auditor KPMG said on Monday it will lay off up to 400 people in South Africa, in its latest shake-up following a corruption scandal that saw it lose several major clients.
The auditor has taken a number of steps since last September to help restore its reputation, including changes to corporate governance and management and measures to improve risk management.
KPMG plans to have just four business hubs in South Africa in Johannesburg, Cape Town, Durban and Port Elizabeth and close other regional offices, it said in a statement.
“These hard decisions were necessary to put the firm on a more sustainable footing, while ensuring we continue to offer our clients the best service and support,” Nhlamulo Dlomu, chief executive of KPMG South Africa, said in a statement.
The auditor’s South African unit has been under close scrutiny since 2017 over work done for a company owned by the Gupta family – who have been accused of using their links to former president Jacob Zuma to influence government decisions and the awarding of tenders – and more recently for failing to disclose loans from small lender VBS Mutual Bank.