Job losses are expected to rise in Russia following KPMG’a announcement of suspension of operations in Russia and Belarus.
This was announced by KPMG in a statement on Sunday evening.
KPMG joins Netflix and PricewaterhouseCoopers (PwC) who have also suspended operations in Russia and Belarus following Russia’s invasion of Ukraine.
What KPMG is saying
“We believe we have a responsibility, along with other global businesses, to respond to the Russian government’s ongoing military attack on Ukraine. As a result, our Russia and Belarus firms will leave the KPMG network,” KPMG said.
The auditing firm says that it “is incredibly difficult” ending its working relationship with the 4,500 people in Russia and Belarus, some of whom have been a part of KPMG for many decades.
This decision is not about them – it is a consequence of the actions of the Russian Government. We are a purpose-led and values-driven organization that believes in doing the right thing.
We will seek to do all we can to ensure we provide transitional support for former colleagues impacted by this decision.
On its part, PwC said it was cutting ties with its Russian member, which has 3,700 partners and staff across 11 locations in the country, as well as its 25-strong office in Belarus.
“As a result of the Russian government’s invasion of Ukraine we have decided that, under the circumstances, PwC should not have a member firm in Russia and consequently PwC Russia will leave the Network,” PwC said.
According to the Financial Times, PwC’s newly independent Russian and Belarusian operations will be renamed and be free to continue working for local clients as well as serving international companies with operations in the countries, according to a source.
Netflix also stated that it has suspended its service in Russia, a company spokesperson said. “Given the circumstances on the ground, we have decided to suspend our service in Russia,” the spokesperson said.
It had earlier announced it would pause all future engagements in Russia, a decision that will cause it to lose between 100,00 and 1 million subscribers.
What you should know
- Sanctions that have been imposed on Russia by the West is pushing global firms to consider the nature of their business with Russian clients.
- The exits follow consultancy Accenture’s announcement on Friday that it had axed its 2,300-person Russian business.
- McKinsey, Boston Consulting Group and Bain & Company have halted work for Russian clients, while mid-tier accountant Grant Thornton has split from its Russian affiliate.
