Scandal-hit KPMG Australia to cut nearly 400 jobs, warns of difficult market

InternationalMust ReadScandal-hit KPMG Australia to cut nearly 400 jobs, warns of difficult marketBy Reuters -Aug 24, 2026Add ARY News on GoogleA man walks past a KPMG logo displayed at company's headquarters in Sydney, Australia, July 23, 2026. REUTERS/Hollie Adams/FileAAResizeKPMG 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, who only took the helm last month, said in a statement ​that the firm recognised “challenges created by our own failings, and the work we must continue ⁠to do to rebuild trust.” The firm 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. It is the ​latest 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 — KPMG, Deloitte, EY and PwC. KPMG Australia also said on Monday that 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. The scandal has triggered a leadership overhaul, with its former CEO, audit boss and chairman, as well as ‌senior audit ⁠partners departing. KPMG Australia’s 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. Read more: Apple cuts over 200 jobs from Vision Pro and Siri teams However, four of its five divisions posted revenue growth. Revenue...