Accounting firm KPMG Australia has announced plans to cut 27 partners and approximately 360 staff members while restructuring its local operations following revenue drops tied to an audit leaks scandal. The firm’s revenue decreased from $2.28 billion in the previous financial year to $2.26 billion for FY2026, with chief executive John Sams signaling expectations of further revenue declines. The upcoming workforce reduction accounts for roughly 5 percent of the firm’s total staff, concentrated primarily within its consulting arm. The decision comes as the firm faces ongoing economic headwinds and commercial fallout from client losses.
KPMG has struggled to retain major ongoing government consulting contracts following allegations that audit partners misused confidential client information and mishandled subsequent internal whistleblower disclosures. The controversy intensified after whistleblower claims revealed that confidential board documents from property group Lendlease were improperly accessed to support competitive bids for major external audit tenders, including Westpac and Dexus.
The firm’s current and former leadership recently appeared before a federal parliamentary inquiry examining the handling of the leaked client data and the firm’s initial response to the whistleblower’s complaints. The fallout mirrors broader industry scrutiny across the “Big Four” professional services firms following previous regulatory and governance scandals in Australia.
“This is not a decision that has been taken lightly, and we know it will have a very real impact on people,” Mr Sams said.
KPMG Australia chief executive John Sams noted that the firm’s ongoing restructuring will primarily affect its consulting business due to sustained weakness in demand for consulting services. He added that shifts across the broader professional services landscape have similarly reduced the necessity for certain corporate and business service roles.
Sams emphasized that the firm’s immediate priority is managing the affected staff with care, dignity, and respect while making practical and wellbeing support central to the transition process.
To better align its operations with KPMG’s global advisory structure, the firm is merging its mid-market and private deals team into its deal advisory and infrastructure practice, while integrating its broader advisory team directly into consulting. Consultations regarding a small number of award-based roles will also commence shortly.
Sams indicated that further job cuts could occur as part of a broader effort to rebuild and renew the firm following internal and external reviews into the audit leaks and whistleblower handling. The findings of these ongoing reviews, expected in the coming months, will determine the next steps in the firm’s recovery plan.
Despite lower overall revenue and a difficult year, Sams expressed gratitude to KPMG staff for serving over 13,000 clients. While the firm’s consulting practice suffered notable declines, revenue grew across four of its five divisions, driven by an 11 percent increase in audit and assurance and a 10.9 percent rise in tax and legal services.
Looking ahead, Sams warned that difficult market conditions are expected to persist through FY27 and beyond, with broader economic growth likely remaining subdued until at least 2028. He cited reduced government spending on external consultants, shifting client expectations, and the integration of artificial intelligence as long-term industry shifts, alongside the internal challenge of rebuilding trust after recent institutional failures.
Source: https://www.abc.net.au/
