KPMG Australia to Cut Around 5% of Workforce Amid Difficult Market Outlook

KPMG Australia said it plans to reduce its workforce by about 5%, affecting 27 partners and approximately 360 employees, as the firm faces challenging market conditions.

The majority of the cuts will come from its consulting and business services divisions. KPMG Australia CEO John Sams, who assumed the role last month, acknowledged the difficulties facing the firm and said it would continue working to rebuild trust following recent controversies.

The firm has faced scrutiny since whistleblower allegations emerged in March that employees had used confidential information to secure lucrative audit contracts. The controversy has also resulted in significant leadership changes, including the departures of KPMG Australia's former CEO, audit chief and chairman, along with several senior audit partners.

KPMG Australia said it expects economic growth to remain subdued until at least 2028, which could affect client investment and prolong business decision-making.

For the financial year ending June 2026, KPMG Australia's revenue declined 1% to A$2.26 billion. Consulting revenue fell 17%, partly due to the loss of government contracts. However, four of its five divisions recorded revenue growth, including deal advisory and infrastructure, tax and legal, audit and assurance, and mid-market and private businesses.

Average pay for equity partners declined 13% during the year as the firm responded to the impact of the controversy and reviewed its costs.

KPMG Australia has also agreed not to bid for new federal government work until September 30 while reviews of its governance, culture, ethics and integrity continue.

The firm said it plans to simplify parts of its organisational structure, creating more integrated teams and bringing its operations closer to its global advisory services.