KPMG Australia plans to cut 5% of jobs, warns soft conditions to persist

KPMG Australia, facing scandal over confidential client information misuse, announced on Monday that it will cut approximately 400 jobs, affecting 27 partners and 360 employees, according to the source. The majority of these reductions will occur in its consulting and business services divisions. CEO John Sams, who assumed the role in July, acknowledged "challenges created by our own failings" and the need to rebuild trust with clients.

The firm has been under intense scrutiny from the Australian government and major clients since whistleblower allegations surfaced in March about its staff using inside information to secure lucrative audit contracts. This is one of several scandals in the accounting sector, prompting the Australian government to consider breaking up the Big Four accounting firms – KPMG, Deloitte, EY, and PwC.

KPMG Australia also expects economic growth to remain sluggish until at least 2028, impacting client investments and decision-making timelines. The scandal has led to a leadership overhaul, with former CEO, audit chief, chairman, and senior audit partners stepping down. Total revenue for KPMG Australia fell 1%, down to A$2.257 billion (US$1.62 billion) in the year ended June 2026, driven by a 17% drop in consulting revenue due to the loss of government contracts.

Four divisions, however, saw revenue growth, while average pay for equity partners decreased by 13% as the firm reviewed its cost structure. KPMG Australia has pledged not to bid for new federal government work until September 30, and investigations into governance, culture, ethics, and integrity are under way. The Big Four accounting firms are currently regulated as partnerships, meaning they are not subject to oversight by Australia's corporate regulator, but this may change as part of government reforms.