KPMG Australia plans to cut 5% of jobs
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KPMG Australia plans a 5% workforce reduction affecting 27 partners and around 360 staff amid scandal over misuse of confidential information, while expecting subdued economic growth until 2028. The firm is undergoing leadership changes, governance reviews, and restructuring to rebuild trust and adapt to market challenges.
KPMG Australia, embroiled in scandal over the misuse of confidential client information, said on Monday it would cut about 5% of its workforce, affecting 27 partners and around 360 employees, and warned of difficult market conditions next year.Most of the headcount reduction will take place in its consulting and business services divisions.KPMG Australia CEO John Sams said in a statement the firm recognised "challenges created by our own failings, and the work we must continue to do to rebuild trust."The firm also said it expected economic growth to remain subdued until at least 2028, weighing on client investment and extending decision-making timeframes."While these conditions are likely to persist, we remain focused on what we can control," Sams said.KPMG has been under intense scrutiny from the Australian government and blue-chip clients since whistleblower allegations came to light in March that its staff used inside information to win lucrative audit contracts.The crisis triggered a leadership overhaul, with its former CEO, audit boss and chairman, as well as senior audit partners departing.Sams, previously a partner in the commercial advisory and transactions practice group, became chief executive last month.KPMG's total revenue slipped 1% to A$2.257 billion ($1.62 billion) in the year ended June 2026, as the loss of government contracts contributed to a 17% slump in consulting revenue.However, four of its five divisions posted revenue growth. Revenue rose 3% in the deal advisory and infrastructure division, 11% in both the tax and legal, and audit and assurance businesses, and 6.4% in the mid-market and private division.KPMG Australia has agreed not to bid for any new federal government work until September 30, while reviews into the firm's governance, culture, ethics and integrity are underway, the government said in June.The firm also said it would simplify parts of its structure to create more integrated teams and align more closely with KPMG's global advisory services.