KPMG is the latest Big 5 firm to lay off consultants due to lackluster revenue growth. According to the The Wall Street Journal, the firm laid off 350 consulting staffers as the U.S. consulting unit’s revenue growth fell behind internal plans.
KPMG’s U.S. consulting arm employs a total of 10,000 consultants and currently has a revenue growth rate of 20 percent for 2000. However, this rate is well behind the company’s aggressive target to increase the unit’s revenue growth by 38 percent a year.
The firm’s fiscal year to date is a reported $1.2 billion and nearly $138 million behind the consulting arm’s goal. Operating income is reportedly sitting at $284.7 million – about $72.8 million behind the target amount.
Last year, the U.S. consulting group represented $2 billion of KPMG’s $12.2 billion in fiscal 1999 global revenue.