KPMG to cut almost 400 jobs after audit leaks scandal
Accounting firm KPMG says it will cut 27 partners and about 360 staff from its Australian arm, and revamp its structure as it grapples with lower revenue from lost contracts following the audit leaks scandal.
Accounting firm KPMG announced plans to cut almost 400 jobs, including 27 partners and 360 staff, in response to lower revenue from lost contracts following an audit leaks scandal. KPMG reported a 5% reduction in workforce, primarily in its consulting arm, as it grapples with continued economic weakness and market challenges. The company expects more revenue falls despite some growth in certain divisions, such as audit and assurance and tax and legal.
The job cuts come after allegations that KPMG audit partners misused client data and mishandled a whistleblower's complaint, leading to the loss of government contracts. KPMG's chief executive, John Sams, emphasized the company's focus on supporting affected employees and rebuilding trust. The restructuring also involves realigning business units to better align with global advisory services.
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