KPMG Australia Cuts Nearly 400 Jobs Amid Scandal and Consulting Slowdown
KPMG Australia will cut about 5% of its workforce, affecting 27 partners and around 360 employees, as weaker consulting demand, reduced government spending and the fallout from a client-information scandal weigh on the firm. The cuts, announced on Monday, August 24, will mainly affect its consulting and business services divisions.
The restructuring comes as KPMG Australia seeks to reduce costs, simplify its operations and rebuild trust following allegations that confidential client information was misused to help secure business.
KPMG Australia to Cut 387 Roles
The announced reduction amounts to approximately 387 positions, comprising 27 partners and about 360 employees. KPMG said the workforce changes reflect a review of its costs and future staffing requirements amid continued economic weakness and difficult market conditions.
The firm said it is also streamlining parts of its organisational structure to create more integrated teams and align its operations more closely with its global advisory services.
The job cuts are concentrated in consulting and business services, areas that have been particularly affected by weaker demand and a reduction in government spending on external consultants.
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Consulting Revenue Falls 17%
KPMG Australia’s financial results highlight the pressure facing its consulting business. Total revenue for the financial year ended June 2026 fell 1% to about A$2.26 billion, while consulting revenue dropped 17% to A$632 million.
The firm also reported a 13% decline in average equity partner remuneration during the year, reflecting the pressure on profitability and the broader restructuring.
However, the weakness was not uniform across the business. KPMG said several other divisions recorded revenue growth, including deal advisory and infrastructure, tax and legal, audit and assurance, and its mid-market and private business.
CEO John Sams Warns of Prolonged Weakness
KPMG Australia CEO John Sams, who took the position in July, said the firm expects economic growth to remain subdued until at least 2028.
Sams pointed to several factors affecting the professional services industry, including weaker client investment, reduced government spending on consultants, changing demand and the growing impact of artificial intelligence.
He also acknowledged that KPMG’s own conduct has contributed to the firm’s current difficulties.
“We also recognise the challenges created by our own failings, and the work we must continue to do to rebuild trust.”
Sams said internal and external reviews are expected to be completed over the coming months, with their findings set to influence the firm’s next stage of its action plan.
KPMG Australia Scandal Adds to Pressure
The workforce reduction comes amid a major controversy involving allegations that KPMG staff misused confidential information obtained from corporate clients.
The allegations surfaced publicly in March after whistleblower claims that confidential board material from Lendlease was used in connection with bids for major audit contracts involving companies including Westpac and Dexus. The allegations have since triggered government scrutiny and parliamentary inquiries.
KPMG has faced criticism from clients and policymakers over the handling of the allegations and the whistleblower’s complaint. The controversy has also contributed to significant leadership changes within the Australian firm.
Several senior figures have departed, including KPMG Australia’s former CEO, audit head and chairman, along with senior audit partners.
Government Contracts and Regulatory Scrutiny
The scandal has had consequences beyond KPMG’s internal operations. The firm has agreed not to bid for new Australian federal government work until September 30 while reviews into its governance, culture, ethics and integrity continue.
The developments have also intensified scrutiny of Australia’s Big Four professional services firms — KPMG, Deloitte, EY and PwC.
The Australian government is considering broader reforms to the sector, including potential changes to the structure and regulatory oversight of the major accounting and consulting firms.
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What Happens Next for KPMG Australia?
KPMG’s latest job cuts represent a significant restructuring as the firm attempts to respond to both cyclical market weakness and the longer-term consequences of the scandal.
For KPMG Australia, the immediate priorities are reducing costs, adapting to lower consulting demand and restoring confidence among clients and regulators. The outcome of the ongoing reviews could determine how extensive further organisational changes will be.
The nearly 400 job cuts therefore mark more than a workforce reduction: they are part of a broader effort by KPMG Australia to reset its business after a difficult financial year and a damaging period of scrutiny.
Disclaimer: This article is based on publicly available reports and information provided for publication. Some portions may have been assisted by artificial intelligence (AI) for research organisation, drafting or language refinement. The article has been reviewed for factual consistency, but readers should refer to official statements and authoritative sources for the latest developments. Allegations mentioned in this article should not be treated as established facts unless confirmed by the relevant authorities.
