KPMG Australia has announced a lay off of 27 partners and about 360 staff members, citing accounting firm restructuring of business after reduced revenue and the loss of government contracts associated with its audit leaks scandal.
The jobs cuts represent nearly 5% of KPMG Australia’s workforce and will affect its consulting division, where demand has significantly reduced.
The firm stated some business services roles will also be eliminated.
KPMG Australia chief executive John Sams stated the decision followed continued economic uncertainty, challenging market conditions and the impact of the firm’s conduct and whistleblower matters.
The company’s revenue saw a decline from $2.28 billion to $2.26 billion in the 2026 financial year. Scams issued a warning that challenging conditions may continue, with the company expecting further pressure on revenue.
KPMG has faced intense scrutiny after allegations that partners misused confidential client information and mishandled a whistleblower complaint. In March, Labor senator Deborah O’Neill raised allegations in Parliament that confidential Lendlease board papers were used to support bids for major audit contracts involving Westpac and Dexus.
Notably, KPMG has faced greater scrutiny following allegations that it misused confidential client information and mishandled a whistleblower complaint.
In March, former and current KPMG partners appeared before a federal inquiry examining the allegations and the firm’s handling of the whistleblower complaint.
Additionally, the restructuring will bring KPMG’s mid-market and private agreements team together with deal advisory and infrastructure, while its advisory team will join consulting.
The updates are intended to bring the Australian business closer to KPMG’s global advisory structure.
Despite the consulting downturn, four of KPMG’s five divisions recorded revenue growth. Audit and assurance revenue significantly raised 11%, while tax and legal revenue rose 10.9%.
Mr Sams stated in a statement the firm was cutting 5 per cent of its workforce, primarily in its consulting arm, "in response to continued economic weakness, difficult market conditions and the impact of the firm's conduct and whistleblower matters".
"Changes to our business and the professional services landscape have also reduced the need for some roles in business services. Our immediate focus is on treating everyone impacted with care, dignity and respect. We are providing practical support and making wellbeing support central to the process," he added.
