Scandal-hit KPMG Australia to cut nearly 400 jobs, warns of difficult market

A scandal-tainted KPMG Australia is set to eliminate nearly 400 jobs, warning of challenging market conditions ahead. The accounting firm acknowledged the damage caused by its own mistakes and the rebuilding of trust required in a statement on Monday. According to KPMG Australia CEO John Sams, the firm recognised the challenges created by their own failings and the ongoing work needed to restore confidence.

Most of the workforce reductions will occur in the consulting and business services divisions. KPMG Australia expects subdued economic growth until at least 2028, which will impact client investments and prolong decision-making processes. The firm has been under heavy scrutiny from the Australian government and major clients since March, following whistleblower allegations that staff used confidential information to secure lucrative audit contracts.

This crisis led to the departure of the former CEO, audit boss, chairman, and several senior audit partners. KPMG's total revenue decreased by 1% to A$2.257 billion (US$1.62 billion) in the year ending June 2026, with a 17% decline in consulting revenue due to the loss of government contracts. However, four of its five divisions experienced revenue growth.

KPMG Australia has pledged not to bid for new federal government work until September 30 and is undergoing reviews of its governance, culture, ethics, and integrity. The company also intends to streamline its structure to foster integrated teams and better align with KPMG's global advisory services.