The moves follow a strategic review of the firm’s activities and KPMG says it takes into account recent client losses and current levels of demand for certain services. As a result, it will close some of its regional centres, operate a refocused advisory business and scale back its internal business support to reflect the reduced footprint.

In future the firm will operate out of four hubs in Johannesburg, Cape Town, Durban and Port Elizabeth. KPMG South Africa said it would remain ‘a business of significant scale’ with around 130 partners and 2,200 employees.

The leadership changes will involve embedding in the firm for an extended period a number of senior KPMG partners from across the international network into board and executive positions, as well as senior client service roles.

Nhlamulo Dlomu, chief executive of KPMG South Africa, said: ‘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.

‘We are putting quality and integrity at the heart of the business and, from now on, the firm will be focused on doing fewer things better. I am confident that we have taken the right steps to reform and reshape the business. Now we need time for these to take hold.’

KPMG South Africa has been in the spotlight since mid-way through last year, when criticisms emerged of its audit work for companies connected with the Gupta family. This is now under investigation by the Independent Regulatory Board for Auditors.

Subsequently, two partners were disciplined over audit failures at a bank, and the auditor general then banned the firm from handling any public sector audits. It has also lost a number of clients, including Barclays Africa, Finbond and the South African Institute of Chartered Accountants’ (SAICA).

Last September the firm announced a new programme of ‘significant steps’, including changes to governance and a new leadership line-up, as well as moves to improve quality and risk management and to the client portfolio.

Details of the senior partners from the international network who are to work with KPMG South Africa to reshape the business would be announced at a later date.

Bill Thomas, chairman of KPMG International, said: ‘Today’s announcement to embed additional senior international partners into the South African leadership team is evidence of the significant investment KPMG International is providing to help ensure KPMG South Africa can continue to focus on trust, quality and integrity.’

Report by Pat Sweet