KPMG Australia has said no decision has been made on possible workforce reductions after reports claimed the firm was considering cutting around 1,000 jobs, or nearly 10 per cent of its workforce, following an audit misconduct scandal.
According to the Australian Financial Review, details of the proposed restructuring were shared with selected partners earlier this week. The report also claimed that the firm’s leadership had urged partners to support the new management team or consider leaving the organisation.
Responding to the report, KPMG said it is reviewing its operating model, cost structure and workforce requirements but stressed that no decisions have been taken regarding specific measures or the impact on employee roles.
The firm said it is evaluating multiple options to ensure it remains prepared for future business challenges. Bill Thomas, KPMG global chairman and CEO, and Gary Wingrove, chief operating officer, are currently in Australia to meet partners and clients during the ongoing review process.
The reported restructuring comes as KPMG Australia continues to deal with the fallout from an audit misconduct controversy that surfaced earlier this year. The firm has been under scrutiny since allegations emerged in March that confidential client information was improperly shared among employees to help secure audit contracts.
The allegations involve the use of data linked to major organisations, including Lendlease, Optus, Westpac, Dexus and Telstra, during bids for audit work. The controversy triggered several senior leadership exits, including those of the firm’s chairman, chief executive officer and head of audit.
Last week, KPMG appointed John Sams, previously a partner in its commercial advisory and transactions practice, as its new CEO.
The firm is also facing multiple investigations by Australian authorities and professional bodies, including the Australian Securities and Investments Commission, the Tax Practitioners Board and Chartered Accountants ANZ. In addition, KPMG remains barred from bidding for new federal government contracts until September.
