KPMG to cut nearly 400 jobs in Australia amid leaks scandal
The Australian division of audit and consulting firm KPMG will cut 27 partners and about 360 employees and change its business structure. The cuts will account for 5% of the company’s workforce, with most affected positions in the consulting division.
As ABC News Australia reports, KPMG Australia CEO John Samms explained the decision by prolonged economic weakness, difficult market conditions, and the consequences of issues related to the firm’s conduct and whistleblower reports. He said the company would provide practical and psychological support to employees affected by the changes.
Revenue and contracts
KPMG Australia’s revenue in the 2025 financial year fell from $2.28 billion to $2.26 billion. Samms said the company expects a further decline in revenue. According to ABC, the firm was unable to retain most of its existing contracts following allegations that KPMG auditors may have improperly used client data and that the company improperly handled a whistleblower complaint.
In March, Labor Party Senator Deborah O’Neill voiced whistleblower allegations in parliament that confidential Lendlease board documents may have been used to prepare bids for major Westpac and Dexus audit tenders. Earlier this month, current and former KPMG partners were summoned to a federal inquiry examining allegations of sharing client information and ignoring whistleblower claims after they emerged.
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Restructuring and further decisions
The company plans to combine its mid-market and private deals team with the deals and infrastructure advisory unit. The advisory division will become part of the consulting business, and the changes are intended to bring KPMG Australia’s structure closer to the company’s global advisory services model. KPMG will also begin consultations on a small number of positions with fixed remuneration terms.
Samms said further cuts were also possible. The company is conducting internal and external reviews in connection with the whistleblower allegations, which it plans to complete in the coming months. Their findings are expected to determine the next stage of KPMG’s action plan.
At the same time, revenue increased in four of the company’s five divisions: by 11% in audit and assurance and by 10.9% in tax and legal services. KPMG expects difficult market conditions to continue in the 2027 financial year and beyond, including due to weak economic growth, changes in the professional services market, and lower government spending on consultants.
