Key facts
- KPMG Australia is cutting 5% of its workforce, including 27 partners and 360 staff.
- The cuts are primarily in the consulting and business services divisions.
- The firm's revenue fell 1% to A$2.26 billion in the 2026 financial year.
- Consulting revenue dropped 17% due to lost government contracts following a data misuse scandal.
- Average partner pay will be reduced by 13%.
KPMG Australia is implementing significant cost-cutting measures, including the dismissal of 27 partners and approximately 360 staff, which constitutes about 5% of its total workforce. This restructuring is a direct response to a document-misuse scandal involving confidential client information, which has led to a decline in demand for its consulting services and a reduction in revenue.
The firm's total revenue for the year ended June 30 fell 1% to A$2.26 billion, with consulting revenue experiencing a sharp 17% drop. This downturn is partly attributed to the loss of government contracts following allegations that KPMG audit partners misused client data and mishandled a whistleblower's complaint. Despite the overall revenue decrease, four of KPMG's five divisions reported growth, with audit and assurance, and tax and legal, each increasing by 11%.
CEO John Sams stated that the cuts were necessary due to continued economic weakness, difficult market conditions, and the impact of the firm's conduct. He acknowledged the reputational challenges and the work required to rebuild trust. Average partner pay will also be reduced by 13%, or about $72,000, bringing the average to $645,000.
KPMG has agreed not to pursue new Australian federal government contracts until September and is undergoing internal and external reviews to inform its future actions. The firm is providing support to affected employees and is restructuring its business units to align more closely with global advisory services.