As demand for consulting services slows, KPMG Australia said on Monday (local time) that it is eliminating roughly 400 jobs as the company grapples with the fallout from allegations that it misused confidential client information to win business.
The consultancy firm said it will reduce its workforce by at least five per cent, eliminating 360 employees and 27 partners across its consulting and business services, Bloomberg reported, citing a statement.
KPMG Australia, in a statement, said, "KPMG has reviewed its costs and future workforce needs in response to continued economic weakness, difficult market conditions and the impact of the firm’s conduct and whistleblower matters." The firm also said it is streamlining parts of its organisational structure to create more integrated teams and better align them with its global advisory services.
The firm, which serves more than 13,000 clients in the market, reported a one per cent decline in total revenue to A$2.26 billion ($1.6 billion) for the year. Consulting revenue, its largest source of income, dropped 17 per cent to A$632 million, while average equity partner remuneration decreased by 13 per cent, according to the statement.
John Sams, the new chief executive officer (CEO), said he expects the tough market environment to persist, with economic growth set to remain subdued until at least 2028. Sams also cited several other factors, including the impact of artificial intelligence (AI), reduced government spending on consultants and the fallout from the ongoing scandal.
He said, "We also recognise the challenges created by our own failings, and the work we must continue to do to rebuild trust." Sams added that the firm is expected to complete several internal and external reviews over the coming months, with their findings helping shape the next stage of its action plan.
Over recent months, the consulting giant has faced repercussions from allegations that it used confidential information obtained from companies, including property developer Lendlease Group, to secure contracts with other corporate clients. The company has faced intense criticism from some of its clients. Earlier this month, at a fiery parliamentary hearing, Optus chairman John Arthur slammed the company for what he called an “egregious breach” of its responsibilities.
The scandal also triggered sweeping leadership changes. Former chairman Martin Sheppard is among a series of executives to have exited the company, with the latest departures including its general counsel and human resources chief.
The controversy has also drawn increased scrutiny to Australia’s audit and consulting sector, adding to a series of misconduct cases involving major professional services firms in the country. In response, the Australian government has proposed sweeping reforms, including greater regulatory powers and higher penalties for violations.
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br>
Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br>
At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br>
She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br>
Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.
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