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🇦🇺 Australia /Economy & Trade

KPMG to cut almost 400 jobs after audit leaks scandal

From ABC Australia · () English

Summarized and contextualized by DistantNews.

At a glance

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  • Accounting firm KPMG Australia will cut 27 partners and about 360 staff, representing 5% of its workforce, due to lower revenue and lost contracts.
  • The cuts are a response to continued economic weakness, difficult market conditions, and the impact of the firm's conduct following audit leaks scandals.
  • KPMG has struggled to retain government contracts after allegations of partners misusing client data and mishandling a whistleblower's complaint.

KPMG Australia is set to eliminate nearly 400 jobs, including 27 partners and approximately 360 staff members, as the accounting firm grapples with declining revenue and the fallout from audit leaks scandals. The firm announced it will also revamp its structure in response to these challenges.

in response to continued economic weakness, difficult market conditions and the impact of the firm's conduct and whistleblower matters

— John SamsKPMG Australia's chief executive explained the reasons behind the workforce reductions.

Chief executive John Sams stated that the job cuts, which represent about 5% of the workforce, are a direct consequence of "continued economic weakness, difficult market conditions and the impact of the firm's conduct and whistleblower matters." Revenue has fallen from $2.28 billion to $2.26 billion in the 2026 financial year, with further declines anticipated.

This is not a decision that has been taken lightly, and we know it will have a very real impact on people.

— John SamsMr. Sams addressed the gravity of the job cut decision and its effect on employees.

The firm has faced significant difficulties retaining government contracts following allegations that KPMG audit partners misused client data and mishandled a whistleblower's complaint. Specifically, allegations surfaced in March that confidential board papers from Lendlease were used to support bids for major audit tenders for Westpac and Dexus. Current and former partners have been questioned in a federal inquiry regarding these practices.

Our immediate focus is on treating everyone impacted with care, dignity and respect. We are providing practical support and making wellbeing support central to the process.

— John SamsMr. Sams outlined the firm's approach to supporting affected employees.

These job cuts, primarily affecting the consulting arm, are part of a broader restructuring aimed at aligning KPMG Australia more closely with its global advisory services. Sams acknowledged the significant impact these decisions will have on employees, emphasizing the firm's commitment to providing support with "care, dignity and respect."

The changes announced today are an important step in the longer work of renewing and rebuilding our firm.

— John SamsMr. Sams described the restructuring and job cuts as part of a larger effort to reform the firm.
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Originally published by ABC Australia. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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