KPMG Australia has announced a significant restructuring, including the decision to exit commercial law and focus on expanding its tax practice.

The move, announced on Tuesday, is part of an $80 million cost-cutting program that began last month with an initial restructure of the firm’s consulting division.

This latest development is expected to result in around 30 legal job cuts, effective September 30, although the firm is still consulting on the final details of the restructure.

The professional services firm’s decision comes amid similar cuts announced by competitors EY, Deloitte, and PwC. KPMG cited a shift in client demand as the primary reason for moving away from its one-stop-shop model towards a tax-focused approach.

This strategy appears to contrast with the trend seen among law firms, which are increasingly aiming to provide comprehensive services to their clients.

Ben Travers, national managing partner of KPMG’s Tax and Legal division, stated, “We will now look to further develop alliances with law firms that offer complementary services to ours rather than invest in our own commercial law business.”

He emphasized the firm’s ambition to become Australia’s leading firm in tax and tax controversy and disputes, highlighting recent promotions and appointments of seven new partners and 21 new directors in this area.

Travers also noted KPMG’s commitment to investing in new technologies, such as KymTax, a generative AI tool designed to transform tax service delivery by offering clients improved speed and assurance.

This restructuring and refocusing effort underscores KPMG’s strategic shift in response to evolving market demands and technological advancements in the professional services sector.