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KPMG Australia, embroiled in scandal \u200cover 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.<\/strong><\/p>\n Most of the headcount reduction will take place in its consulting and business \u200bservices divisions.<\/p>\n KPMG Australia CEO John Sams, who only took the helm last month, said in a statement \u200bthat the firm recognised \u201cchallenges created by our own failings, and the work we must continue \u2060to do to rebuild trust.\u201d<\/p>\n The firm has been under intense scrutiny from the Australian government and blue-chip clients since \u200bwhistleblower allegations came to light in March that its staff used inside information to win lucrative audit contracts.<\/p>\n It is the \u200blatest of a run of scandals in the sector and last month the Australian government said it was considering breaking up the Big Four accounting firms \u2014 KPMG, Deloitte, EY and PwC.<\/p>\n KPMG Australia also said on Monday that it expected economic growth to remain subdued until at \u200bleast 2028, weighing on client investment and extending decision-making timeframes.<\/p>\n \u201cWhile these conditions are likely to persist, we remain focused \u200bon what we can control,\u201d Sams said.<\/p>\n The scandal has triggered a leadership overhaul, with its former CEO, audit boss and chairman, as well as \u200csenior audit \u2060partners departing.
KPMG Australia\u2019s overall revenue slipped 1% to A$2.26 billion ($1.6 billion) in the year ended June 2026, as the loss of government contracts contributed to a 17% slump in consulting revenue.<\/p>\n