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

KPMG Australia, grappling with a scandal involving the misuse of confidential client data, announced on Monday that it will lay off approximately 400 employees, including 27 partners and 360 staff members, representing nearly 5% of its workforce. The majority of these reductions will occur in the consulting and business services divisions.

KPMG Australia's CEO, John Sams, acknowledged the challenges his firm faces due to its own mistakes and the need to rebuild trust. He also warned of challenging market conditions anticipated throughout the next year.

The Australian firm, which has been under intense investigation by the government and major clients following whistleblower allegations in March, has undergone significant leadership changes. The former CEO, audit chief, chairman, and several senior audit partners have stepped down. Sams, who joined KPMG as a partner in the commercial advisory and transactions practice group last month, assumed the role of chief executive officer.

In the fiscal year ending June 2026, KPMG Australia's total revenue decreased by 1% to A$2.257 billion (US$1.62 billion), as government contract losses contributed to a 17% decline in consulting revenue. However, four of the firm's five divisions experienced revenue growth. Consulting revenue increased by 3%, while audit and assurance services saw an 11% rise, tax and legal business grew by 17%, and the mid-market and private division expanded by 6.4%.

KPMG Australia has pledged not to bid for any new federal government contracts until September 30. Additionally, the firm is undergoing reviews of its governance, culture, ethics, and integrity. Meanwhile, the company plans to streamline its structure to promote more integrated teams and better align with KPMG's global advisory services.