Key facts
- KPMG Australia is cutting 5% of its workforce, affecting 360 employees and 27 partners.
- The firm is seeking financial support from KPMG International due to economic weakness and an audit scandal.
- Revenue for KPMG Australia fell 1% to AUD $2.25bn in the 2026 financial year.
- Partner pay was cut by 13%, and approximately 75 partners have left since March.
- The audit scandal involved the misuse of confidential data to win contracts and mishandling of a whistleblower complaint.
KPMG Australia is implementing significant cost-cutting measures, including a 5% workforce reduction affecting 360 employees and 27 partners, alongside a 13% cut in partner pay. This comes as the firm seeks financial support from its parent group, KPMG International, to remain solvent amid a downturn in client spending and the severe fallout from an audit scandal. The scandal involved senior staff leaking confidential data to win audit contracts and the subsequent mishandling of a whistleblower complaint, leading to a freeze on public sector contracts and the loss of major corporate clients, including Lendlease after a 68-year relationship.
KPMG Australia has reported three consecutive years of declining revenue, with a 1% drop to AUD $2.25 billion in the 2026 financial year, following a 3% decrease the previous year. The firm's revenue covenants with banks are also a point of pressure. The job cuts are part of a cost-cutting exercise known as Project Vector. Approximately 75 partners have departed since the scandal broke in March. Experts suggest that allowing a major member firm to become insolvent would cause significant reputational damage to KPMG globally, making financial support from the parent group likely.
KPMG International, the parent entity registered in England, oversees policies for its independent member firms worldwide. Gary Wingrove, the incoming global chairman and chief executive, previously led KPMG Australia from 2013 to 2021. While KPMG International declined to comment on specific financial arrangements, the situation highlights the challenges faced by the firm in Australia.