SYDNEY: KPMG Australia, embroiled in scandal over the misuse of confidential client information, says it would cut about 5% of its workforce, affecting 27 partners and around 360 employees, and warns of difficult market conditions next year.
Most of the headcount reduction will take place in its consulting and business services divisions.
KPMG Australia chief executive officer (CEO) John Sams, who took the helm last month, said the firm recognised “challenges created by our failings, and the work we must continue to do to rebuild trust”.
The firm 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.
It is the latest of a run of scandals in the sector and last month the Australian government said it was considering breaking up the Big Four accounting firms – KPMG, Deloitte, EY and PwC.
KPMG Australia also said yesterday that 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.
The scandal has triggered a leadership overhaul, with its former CEO, audit boss and chairman, as well as senior audit partners departing.
KPMG Australia’s overall revenue slipped 1% to A$2.26bil (US$1.6bil) 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.
Average pay for equity partners fell 13% for the year in the wake of the scandal and as KPMG reviewed its cost base.
KPMG Australia has agreed not to bid for any new federal government work until Sept 30. — Reuters
