KPMG Australia to Cut Almost 400 Jobs After Audit Scandal

KPMG Australia is cutting almost 400 jobs, including 27 partners and about 360 staff, as the accounting firm grapples with lower revenue after losing contracts following an audit leaks scandal, according to ABC News. The KPMG job cuts Australia amount to 5% of the firm's workforce, primarily in its consulting arm.

The firm's revenue fell from $2.28 billion the previous year to $2.26 billion in the 2026 financial year, and chief executive John Sams said he expects further declines. KPMG has been unable to retain most of its ongoing government contracts following allegations that KPMG audit scandal partners misused client data and 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. Earlier this month, current and former KPMG partners were questioned before a federal inquiry examining the firm's handling of the matter.

Sams said in a statement the cuts were made "in response to continued economic weakness, difficult market conditions and the impact of the firm's conduct and whistleblower matters." The firm will restructure so its mid-market and private deals team joins deal advisory and infrastructure, aligning KPMG Australia more closely with its global advisory services, and Sams said more cuts could follow.

While consulting revenue declined, KPMG Australia revenue grew in four of the firm's five divisions, led by audit and assurance, up 11%, and tax and legal, up 10.9%. Sams said difficult market conditions are expected to continue into the 2027 financial year and beyond, with economic growth expected to remain subdued until at least 2028.

The KPMG whistleblower scandal fallout follows a similar tax leaks controversy at PricewaterhouseCoopers, which has also affected "big four" accounting firms' government consulting revenue more broadly, according to the report. More information is available on the KPMG Australia website.

In related Australian business news, a separate report examined superannuation reforms targeting dodgy operators.