Scandal-plagued KPMG Australia is cutting almost 400 jobs as it grapples with the fallout from allegations it misused confidential client information to win business and as demand for consulting services slows.
The consultancy giant will reduce its workforce by about 5%, cutting 360 employees and 27 partners across its consulting and business services, according to a statement on Monday.
Its total revenue fell 1% to A$2.26 billion ($1.6 billion) in the year through June, the firm said. Consulting revenue, which is the biggest contributor to the business, slumped 17% to A$632 million, while average equity partner remuneration fell 13%, according to the statement.
Read more: KPMG Australia Scandal Widens After it Confirms Optus Data Was Misused
“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,” KPMG Australia said in the statement. The firm, which serves more than 13,000 clients in the market, said it’s simplifying parts of its structure to create more connected teams and align more closely with KPMG’s global advisory services.
New Chief Executive Officer John Sams said he expects the tough market environment to continue, with economic growth set to remain subdued until at least 2028. He also cited other factors like the impact of AI and lower government spending on consultants, along with the blow from the ongoing scandal.
“We also recognise the challenges created by our own failings, and the work we must continue to do to rebuild trust,” he said. Several internal and external reviews will be completed in the coming months that will influence the next phase of the firm’s action plan, he added.
Over the last few months, KPMG Australia has been battling the fallout from allegations it misused confidential information from companies including property developer Lendlease Group to win contracts with other corporate clients.
KPMG has faced heavy criticism from some clients. At a fiery parliamentary hearing earlier this month, Optus Chairman John Arthur slammed the firm for what he called an “egregious breach” of its responsibilities.
The saga has also triggered sweeping leadership changes. Former Chairman Martin Sheppard is among the slew of executives to leave the firm, with the latest including its general counsel and human resources chief.
Meanwhile, the controversy has also shone a spotlight on the audit and consulting industry in Australia and extends a string of misbehavior from large professional services firms in the country. The government has since proposed sweeping changes to the sector including new powers to police the industry and impose larger fines.
Photograph: KPMG offices in Sydney, Australia, on Monday, June 6, 2026; photo credit: Brendon Thorne/Bloomberg
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