KPMG Consulting Announces Workforce Action

Apr 19, 2001, 01:00 ET from KPMG Consulting, Inc.

    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
 www.kpmgconsulting.com. http://www.kpmgconsulting.com.  For news media, visit
 http://kpmgconsulting.com/direct.asp?area=contactus.
 
 

SOURCE KPMG Consulting, Inc.
    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
 www.kpmgconsulting.com. http://www.kpmgconsulting.com.  For news media, visit
 http://kpmgconsulting.com/direct.asp?area=contactus.
 
 SOURCE  KPMG Consulting, Inc.