Consulting firm BearingPoint Inc plans to cut 700 staff at its recently acquired KPMG Consulting operations in Germany, Austria and Switzerland. In August, BearingPoint, which was formerly known as KPMG Consulting Inc, acquired the nationally owned businesses that were collectively known as KPMG Consulting AG. The numbers involved represent about 4% of the company’s global workforce.
The McLean, Virginia-based company said the cuts are being made to better align the business to meet current demand for systems integration and consulting services. The severance costs were previously accounted as part of the takeover, so BearingPoint will not take any additional charges in its current financial quarter.
BearingPoint GmbH, as the Central European business has since been renamed, is also being reorganized into four divisions. The operation’s 2,100 employees will be split into a Business Consulting division covering industry-specific projects, Global Solutions Delivery for SAP implementations, Managed Services, and lastly, Technology Procurement Services for product support and development activities.