BearingPoint, the IT services company formerly known as KPMG Consulting, is significantly paring down its staff in Germany, Austria and Switzerland to balance its workforce with market demand.
About 700 jobs are being cut, leaving the company with 2,100 employees in these countries.
BearingPoint's global workforce will fall from 17,000 to around 16,300, a company spokesman said yesterday.
The company did not expect to take a charge to earnings related to these actions, nor do the staff cuts affect the company's previous guidance for the current quarter, which ends 31 December, nor for the 2003 financial year, which ends in June.
BearingPoint's European arm is also being reorganised into four divisions and its sales force is being strengthened.