KPMG Australia will cut 27 partners and about 360 employees, or 5% of its workforce, as the Big Four accounting firm grapples with lost government contracts, weaker consulting demand and the fallout from an audit leaks scandal.
KPMG Australia is cutting almost 400 jobs as the accounting giant confronts the financial fallout from a major audit scandal and a broader slowdown in demand for consulting services. The firm said it will eliminate 27 partner positions and around 360 staff roles, equivalent to about 5 per cent of its Australian workforce. Most of the affected positions will be in its consulting business, while some business services roles will also be removed.
KPMG Australia chief executive John Sams said the cuts reflected “continued economic weakness, difficult market conditions and the impact of the firm’s conduct and whistleblower matters”. The restructuring comes after KPMG faced intense scrutiny over allegations that audit partners misused confidential client information and mishandled a whistleblower complaint.
In March, Labour senator Deborah O’Neill raised allegations in parliament that confidential Lendlease board papers had been used to support bids for major audit tenders involving Westpac and Dexus.
The scandal has also damaged KPMG’s government business. The firm has been unable to retain most of its ongoing government contracts following the controversy. Earlier this month, current and former KPMG partners appeared before a federal inquiry investigating allegations that confidential client information was shared and whistleblower concerns were not properly addressed.
More from BusinessRevenue falls as consulting demand weakens
KPMG Australia’s revenue declined to A$2.26 billion in FY2026, from A$2.28 billion a year earlier. Sams warned that revenue could fall further as difficult market conditions persist. The company expects subdued economic growth to continue until at least 2028, with clients delaying investment and taking longer to make spending decisions. KPMG is also restructuring parts of its business. Its mid-market and private deals team will join deal advisory and infrastructure, while its advisory team will be brought into consulting.
Despite the overall revenue decline, some parts of the business performed strongly. Audit and assurance revenue increased 11 per cent, while tax and legal revenue rose 10.9 per cent. KPMG said it also continued to invest in technology and artificial intelligence as the professional services industry undergoes rapid change. Sams said further changes could follow, with the firm beginning consultations on a small number of additional roles.
The latest layoffs underline the pressure facing Australia’s major professional services firms as government spending on consultants remains subdued, clients rein in discretionary spending and regulators increase scrutiny of conflicts of interest and the separation between audit and consulting businesses.
