KPMG Australia cuts 387 jobs as scandal fallout hits consulting

KPMG Australia is cutting almost 400 jobs as the accounting firm faces weaker consulting demand and the financial impact of its audit scandal.

The firm will cut 27 partner positions and about 360 staff roles, affecting around 5% of its Australian workforce. Most of the cuts will be in consulting, while some business services roles will also be affected.

KPMG Australia chief executive John Sams said the decision reflected “continued economic weakness, difficult market conditions and the impact of the firm's conduct and whistleblower matters”.

“This is not a decision that has been taken lightly, and we know it will have a very real impact on people,” Sams said.

“Our immediate focus is on treating everyone impacted with care, dignity and respect. We are providing practical support and making wellbeing central to the process.”

Revenue falls as consulting demand weakens

The firm’s revenue fell to A$ 2.26 billion in FY 2026, from A$2.28 billion previous year.

Sams said, “Our total revenue was slightly lower than last year, and below our expectations.”

The firm expects difficult market conditions to continue through FY27 and beyond. 

Sams commented, “Subdued economic growth was expected to affect client investment and extend decision-making timeframes.”

KPMG has also faced weaker demand for consulting services and lower government spending on consultants.

Audit and tax revenue grows

Despite the overall decline, revenue increased across four of KPMG's five divisions.

Audit and assurance revenue rose 11%, while tax and legal revenue increased 10.9%. 

The firm also continued to invest in technology and artificial intelligence.

“The professional services sector was changing rapidly as client expectations evolved and AI changed how services were delivered,” Sam mentioned.

Restructuring follows scrutiny

KPMG has been under scrutiny following allegations that audit partners misused confidential client information and mishandled a whistleblower complaint.

In March, Labor senator Deborah O'Neill raised allegations in parliament that confidential Lendlease board papers were used to support bids for major audit tenders involving Westpac and Dexus.

Earlier this month, current and former KPMG partners appeared before a federal inquiry examining the allegations and the firm's handling of the whistleblower's concerns.

KPMG has also been unable to retain most of its ongoing government contracts following the controversy.

The firm is now restructuring parts of its business. Its mid-market and private deals team will join deal advisory and infrastructure, while its advisory team will join consulting.

The changes will bring KPMG Australia's structure closer to its global advisory services.

More roles could be affected

KPMG will also begin consultations on a small number of award-based roles.

“The changes announced today are an important step in the longer work of renewing and rebuilding our firm,” Sam pointed out.

“KPMG employees continued to deliver outstanding work for more than 13,000 clients, while supporting one another through a difficult period for the firm,” he concluded.

The reviews into the whistleblower allegations are expected to be completed in the coming months.