KPMG Australia is cutting 27 partners and about 360 employees in the wake of an audit leaks scandal that saw it cut off from new government contracts.
The audit and consulting giant today reported its revenue fell 1% year-on-year, to $2.26bn in the year 2025-26.
While the embattled audit arm had seen revenue grow 11%, its consulting revenue was down 16.9%. Most of the workers to be let go are from the consulting arm.
KPMG’s new chief executive, John Sams, said weak demand for its services was expected to continue beyond the next 12 months, blaming Australia’s weak economy. He said:
double quotation markThe professional services sector is also changing rapidly as client expectations evolve, AI reshapes the way services are delivered and government spending on consultants remains lower. We also recognise the challenges created by our own failings, and the work we must continue to do to rebuild trust …
After careful consideration, we have made the difficult decision to reduce our workforce and restructure parts of the firm. This is not a decision that has been taken lightly, and we know it will have a very real impact on people.
The firm said it was discussing further cuts to a small number of award-based jobs. Sams said KPMG would continue to assess its operating environment as it sought to stay financially sustainable. You can read about the firm’s difficulties here: