KPMG Australia has slashed jobs as the fallout of a major audit scandal continues. (ABC News: John Gunn)
Accounting firm KPMG is cutting hundreds of jobs after revenue fell as a result of a recent audit inquiry.
5% – The percentage of the KPMG workforce to be cut.
Accounting firm KPMG says it will cut 27 partners and about 360 staff from its local arm, and revamp its structure as it grapples with lower revenue from lost contracts following the audit leaks scandal.
The company's revenue fell from $2.28 billion the previous year, to $2.26 billion in the 2026 financial year, and KPMG Australia chief executive John Sams expected more revenue falls.
KPMG has been unable to retain most of its ongoing government contracts after allegations KPMG audit partners misused client data and then mishandled a whistleblower's complaint about it.
In March, Labor senator Deborah O'Neill shared with parliament a whistleblower's allegations that confidential board papers from Lendlease were used to support bids for major audit tenders for Westpac and Dexus.
And earlier this month, the firm's current and former partners were hauled before a federal inquiry probing why the firm allegedly shared client information and ignored the whistleblower's allegations when they first surfaced.
Five former KPMG partners were grilled in camera: Julian McPherson (left), Kim Lawry, Martin Sheppard, Andrew Yates and Eileen Hoggett. (ABC News: Matt Roberts)
The job cuts at KPMG's Australian arm were widely expected as the firm reportedly sought financial support from KPMG International to remain solvent.
Former Telstra chief Ziggy Switkowski has unveiled a review of PwC, but it's unlikely this is the end of an intense probe of its business and the way other consulting firms manage conflicts of interest.
KPMG is one of the "big four" accounting firms, which have taken a hit to their bottom line from getting fewer ongoing government consulting contracts, following the earlier tax leaks controversy at PricewaterhouseCoopers.
Mr Sams said in a statement the firm was cutting 5 per cent of its workforce, primarily in its consulting arm, "in response to continued economic weakness, difficult market conditions and the impact of the firm's conduct and whistleblower matters".
This includes 27 partners and about 360 employees.
With demand for consulting remaining weaker, "most of the roles affected will be in our consulting business".
