KPMG Australia cuts staff and partner pay after audit confidentiality scandal

In the wake of scandals about the misuse of confidential information, embattled consulting firm KPMG is losing million-dollar contracts and cutting its workforce. And that's all before the corporate regulator ASIC has even opened its mouth.

Scandal-Plagued KPMG To Cut Australian Workforce Following Government Contract Suspension A major consultancy firm under fire for misconduct in its audit business is cutting its local workforce following a suspension from applying for new government contracts. KPMG’s U.S. headquarters at Two Manhattan West. Photo via Emily Louick Photography and Entropy Film Works Inc. KPMG - one of the "Big Four" accounting firms alongside Deloitte, PwC, and EY - revealed on Aug. 24 that its annual revenue dipped 1 percent to $2.26 billion (US$1.62 billion) in fiscal 2026. The firm also warned of a rocky road ahead, with new CEO John Sams noting, "We expect difficult market conditions to continue in financial year 2027 and beyond." A combination of soft market conditions and a continued drop in government reliance on consultants drove a 16.9 percent revenue decrease in KPMG's consulting business. However, the firm saw growth elsewhere, with revenue for its audit and assurance and its tax and legal arms rising 11 percent and 10.9 percent, respectively. Following a review of its operating costs and the fallout from recent conduct and whistleblower controversies, KPMG will cut its workforce by 5 percent. The reduction will primarily impact the consulting and business services divisions, eliminating 27 partner roles and approximately 360 employees. Despite overall revenue falling short of expectations, Sams noted that four out of the firm's five businesses grew. "This result reflects the resilience of our business and, above all, the commitment of our people in a very challenging year," he said. "We will continue to monitor performance closely, act when needed and consider carefully how the firm needs to be set up for the future." The firm's leadership will not escape the financial hit, however, with average equity partner remuneration plunging 13 percent from the previous year. KPMG is currently banned from bidding on federal government contracts until at least the end of September, pending the finance department's review of its conduct. Several state governments have similarly put the firm on ice. The firm has been engulfed in an audit leak scandal since facing a federal parliamentary committee hearing in June. During the inquiry, it was revealed that some executives had misused confidential board papers - including Lendlease documents used to support audit bids for Westpac and Dexus - to win new work and mistreated a whistleblower who had raised concerns. Labor Senator Deborah O'Neill aired the allegations in parliament, and the firm was referred to the National Anti-Corruption Commission. The scandal has already ousted numerous executives, including former CEO Andrew Yates and chair Martin Sheppard. Sams confirmed that several internal and external reviews will wrap up in the coming months. "Their findings will inform the next phase of our action plan and help ensure we take all necessary action," Sams said. "We know there is more to do." KPMG currently holds 297 active federal contracts worth $653 million. Tyler Durden Tue, 08/25/2026 - 21:20

The Big Four firm plans to cut hundreds of employees as its annual consulting revenue falls 16.9% and a whistleblower-led scandal continues.

The job cuts follow a sharp decline in consulting revenue as the firm grapples with weaker demand.

The firm has been reeling from allegations that its partners misused confidential client information, including from property group Lendlease, to pursue business from rival companies.

Big Four firm to let go of 5% of country staff and reduce compensation by 13% as consulting revenue tanks

KPMG Australia is set to cut around five percent of its workforce, a move triggered by a scandal involving breach of client confidentiality. The firm projects a challenging economic landscape lasting until 2028. Revenue has dipped by one percent, with a striking decline in consulting services. This restructuring is part of KPMG's efforts to streamline operations while under government investigation.

KPMG Australia, embroiled in scandal over the misuse of confidential client information, said on Monday it would cut about 5% of its ‌workforce, affecting 27 partners ⁠and ⁠around 360 employees, and warned of difficult market conditions next year.Most of the headcount reduction will take ​place in its consulting and business services divisions.KPMG Australia CEO John Sams said in a ​statement the firm recognised "challenges created by our own failings, and the work we must continue to do to rebuild trust."The firm also said it expected economic growth to ​remain subdued until at least 2028, weighing on client ⁠investment and extending ‌decision-making timeframes."While these conditions are likely to persist, we remain focused ​on what ​we can control," Sams said.KPMG has been under intense scrutiny ⁠from the Australian government and blue-chip clients since whistleblower allegations came ​to light in March that its staff used inside information ​to win lucrative audit contracts.The crisis triggered a leadership overhaul, with its former CEO, audit boss and chairman, as well as senior audit partners departing.Sams, previously a partner in the commercial advisory and transactions practice group, became chief executive last month.KPMG's total revenue slipped 1% to A$2.257 billion ($1.62 billion) in the year ended June 2026, ‌as the loss of government contracts contributed to a 17% slump in consulting revenue.However, four of its five divisions posted revenue growth. Revenue ​rose 3% in ​the deal advisory ⁠and infrastructure division, 11% in both the tax and legal, and audit and assurance businesses, and 6.4% in the mid-market and private division.KPMG Australia has agreed not to bid ​for any new federal government work until September 30, while reviews into the firm's governance, culture, ethics and integrity are underway, the government said in June.The firm also said it would simplify parts of its structure to create more integrated teams and align more closely with KPMG's global advisory services.

Accounting firm KPMG says it will cut 27 partners and about 360 staff from its Australian arm, and revamp its structure as it grapples with lower revenue from lost contracts following the audit leaks scandal.