KPMG Australia to Cut 5% of Workforce Amid Scandal

KPMG Australia said on Monday it would cut about 5% of its workforce, affecting 27 partners and around 360 employees, as the accounting firm faces the fallout from a scandal involving the misuse of confidential client information and warns of difficult market conditions ahead. Most of the reductions will come from its consulting and business services divisions.

New CEO John Sams, who took over last month, acknowledged the challenges facing the firm, including the need to rebuild trust following whistleblower allegations that staff used inside information to secure lucrative audit contracts. The scandal has triggered a major leadership overhaul, while the Australian government is considering reforms that could reshape the Big Four accounting firms. KPMG has also agreed not to bid for new federal government work until September 30 while governance and ethics reviews continue.

KPMG Australia reported a 1% decline in overall revenue to A$2.26 billion for the year ended June 2026, with consulting revenue falling 17% following the loss of government contracts. Despite this, four of its five divisions recorded revenue growth. The firm expects economic growth to remain subdued until at least 2028 and said it would simplify parts of its structure to create more integrated teams and align more closely with its global advisory services.

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