KPMG Australia will cut about 5% of its workforce, affecting 27 partners and around 360 employees, as the scandal-hit accounting firm warned of difficult market conditions ahead. Most of the reductions will come from its consulting and business services divisions.
The firm, which has faced intense scrutiny over allegations that staff misused confidential client information to secure lucrative audit contracts, said economic growth was expected to remain subdued until at least 2028. KPMG Australia said this was weighing on client investment and extending decision-making timeframes.
Newly appointed CEO John Sams said the firm recognised the challenges created by its own failings and the work required to rebuild trust.
KPMG Australia’s overall revenue fell 1% to A$2.26 billion for the year ended June 2026, with consulting revenue plunging nearly 17% after the loss of government contracts.
However, four of its five divisions recorded revenue growth, including an 11% increase in both tax and legal and audit and assurance. Deal advisory and infrastructure revenue rose 3% while the mid-market and private division grew 6.4%.
Average pay for equity partners fell 13% during the year as the firm reviewed its cost base.
The cuts come as the Australian government considers tougher reforms for the Big Four accounting firms, including potentially breaking up KPMG, Deloitte, EY and PwC.
KPMG Australia has also agreed not to bid for new federal government work until September 30 while reviews into its governance, culture, ethics and integrity continue.
Reuters
