KPMG Australia has denied making any decision on potential job cuts after reports claimed the firm was preparing to eliminate around 1,000 roles, or about 10% of its workforce, as it grapples with the fallout from an audit misconduct scandal.
According to the Australian Financial Review (AFR), the firm had briefed selected partners this week on plans to reduce headcount.
The report also claimed the firm's leadership had urged partners to support the new management team or leave the organisation.
However, KPMG said no final decision had been taken.
"We are reviewing our operating model, cost base and workforce needs. It is important to note that no decisions have been made regarding any specific measures or potential impact on roles," a KPMG spokesperson said.
The spokesperson added the firm was continuing to evaluate "a range of options to ensure the firm remains well positioned for the challenges ahead."
Leadership reviews business amid ongoing scrutiny
As per the media reports, KPMG said Global Chairman and CEO Bill Thomas and Chief Operating Officer Gary Wingrove are in Australia this week to meet partners and clients as the firm continues to navigate a prolonged period of reputational and regulatory pressure.
The firm has been under intense scrutiny since whistleblower allegations surfaced in March, accusing KPMG of using confidential client information to secure lucrative audit contracts.
The allegations centre on the sharing of confidential data from Lendlease and Optus among staff involved in audit bids for major Australian companies, including Westpac, Dexus and Telstra.
Regulatory investigations continue
The controversy has triggered significant leadership changes.
The firm's chairman, chief executive and audit chief have all stepped down in recent months.
Last week, KPMG appointed John Sams, previously a partner in its commercial advisory and transactions practice, as chief executive.
The accounting firm is also facing multiple investigations by the Australian government, the Australian Securities and Investments Commission, the Tax Practitioners Board and Chartered Accountants ANZ.
KPMG remains barred from bidding for new Australian federal government contracts until September as the investigations continue.