KPMG Australia is set to reduce its workforce by around 5 per cent as the firm responds to weaker business conditions and continues efforts to rebuild trust following a controversy over the handling of confidential client information.
The workforce reduction will affect 27 partners and around 360 employees. Consulting and business services are expected to account for most of the affected roles.
The cuts come as KPMG Australia undergoes a leadership transition following allegations raised by whistleblowers in March. The claims centred on the alleged use of confidential information to help secure audit contracts. The controversy has increased scrutiny of the firm from government authorities and corporate clients.
John Sams, who took over as KPMG Australia’s CEO last month, said: “We recognise the challenges created by our own failings, and the work we must continue to do to rebuild trust.”
The firm is also preparing for a prolonged period of subdued economic activity. KPMG Australia expects economic growth to remain weak until at least 2028. It said this could affect client investment and extend the time businesses take to make decisions.
The workforce changes follow a difficult financial year. KPMG Australia’s revenue fell one per cent to A$1.6 billion for the year ended June 2026. Consulting revenue declined 17 per cent, partly due to the loss of government contracts.
Average compensation for equity partners fell 13 per cent during the year as the firm reviewed costs. The controversy has also led to several senior departures, including its former CEO, audit head and chairman.
KPMG Australia has agreed not to pursue new federal government work until 30 September. Government reviews into its governance, culture, ethics and integrity are also underway.
Alongside the layoffs, the firm plans to simplify parts of its organisational structure. It will seek to create more integrated teams and align its advisory operations more closely with its global business.
