MCLEAN, Va., April 19 /PRNewswire/ -- KPMG Consulting, Inc. (Nasdaq: KCIN)
today announced that it plans to reduce its workforce by approximately 450 to
550 employees in the United States and Canada, in order to balance workforce
capacity with market demand for services. The action impacts approximately
five percent of the company's worldwide workforce.
(Photo: http://www.newscom.com/cgi-bin/prnh/20001219/DCTU032LOGO )
"While overall our business continues to grow, we have seen weakened
demand for some services, predominantly in the financial services sector,
during the latter part of the March quarter," said Rand Blazer, chairman and
chief executive officer, KPMG Consulting. "This action is in response to what
we are seeing in the market, and will allow us to continue to manage the total
performance of the company in future periods."
KPMG Consulting will release earnings for its third fiscal quarter, ended
March 31, on May 1, 2001, after the market close. At that time, it expects to
report continued growth with revenues in the range of $743 million to $753
million as compared to the $632 million and $703 million reported in the March
and December quarters last year, respectively. The charge associated with
this workforce reduction will be recorded in the June 2001 quarter and will be
in the range of $15 million to $20 million.
KPMG Consulting has reduced its workforce once before in February 2000.
That action impacted fewer than 350 employees, and was similarly designed to
ensure the alignment of the company's workforce against market demand for
certain types of services.
ABOUT KPMG CONSULTING
As of February 8, 2001, KPMG Consulting, Inc. is an independent consulting
company, no longer affiliated with KPMG LLP, the tax and audit firm. KPMG
Consulting should be referenced as such in the first and all subsequent
references.
KPMG Consulting, Inc. (Nasdaq: KCIN), based in McLean, Virginia, is one of
the world's largest consulting companies with more than $2 billion in annual
revenues. Our more than 9,100 professionals provide business and technology
strategy, systems design and architecture, applications implementation,
network and systems integration, and related services that enable clients to
leverage technology for stronger return on investment, and real, sustainable
competitive advantage. We serve more than 2,500 clients, including global
companies, Fortune 1000 companies, small and medium-sized businesses,
government agencies and other organizations, through six industry-focused
lines of business, including: financial services, consumer and industrial
markets, high tech, communications and content, public services and health
care.
For more information about KPMG Consulting, visit our Web site at
http://www.kpmgconsulting.com. http://www.kpmgconsulting.com. For news media, visit
http://kpmgconsulting.com/direct.asp?area=contactus.
SOURCE KPMG Consulting, Inc.
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Related links:
http://www.kpmgconsulting.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20001219/DCTU032LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 201-369-3467
CONTACT:
Elizabeth Brooks of KPMG Consulting, Inc.,
703-747-4010, or email: erbrooks@kpmg.com
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