KPMG Australia Workforce Reduction
KPMG Australia Cuts 400 Jobs Amid Revenue Decline and Scandal Fallout
Key Points
Equity partner pay declined by about 13% last year, highlighting broader financial pressures beyond job cuts.
For the year to June 30, KPMG Australia reported revenue of about $2.1 billion, down 1% from the prior year, with consulting revenue falling 17% while the audit, tax and legal divisions grew.
KPMG Australia reportedly sought financial assistance from KPMG International to stay solvent amid the restructuring and ongoing scrutiny.
The advisory division is being integrated into the consulting business, with mid-market and private deals teams merged into the deals and infrastructure advisory unit to align with KPMG's global advisory model.
KPMG Australia is cutting about 400 jobs — 27 partners and roughly 360 staff — in a 5% workforce reduction Bloomberg announced to address declining revenue and fallout from a data-handling scandal. The audit and consulting giant reported revenue of $2.26 billion for the 2025 financial year, down from $2.28 billion, with consulting revenue falling 17% Bloomberg. Allegations that KPMG auditors misused confidential client data to win business have damaged contract retention and triggered a government suspension from bidding on federal work The Nightly.
The firm is restructuring by merging its mid-market and private deals teams into a single unit aligned with KPMG's global model SSB Crack. Equity partner pay dropped about 13% last year, signaling financial strain beyond headcount cuts. KPMG warned that revenue will likely decline further in FY27, particularly in consulting, as the company tries to rebuild trust Bloomberg.
Scandal Sparked the Crisis
KPMG faces mounting pressure after whistleblower allegations surfaced about auditors misusing confidential client information. The scandal prompted the federal government to suspend KPMG from applying for new contracts until at least September Perth Now. Major clients — including Lendlease and potential audit bids for Westpac and Dexus — have become flight risks as trust erodes Bloomberg.
Consulting Division Bears the Heaviest Blow
Consulting revenue plummeted 17% for the year to June 30, making it the biggest casualty of the crisis Bloomberg. The firm is reshuffling advisory teams into the consulting business to cut costs and eliminate overlaps. Most of the 400 job cuts will land in consulting, where demand has weakened sharply Bloomberg.
Audit and Tax Units Stay Afloat While Consulting Sinks
Unlike consulting, KPMG's audit, tax, and legal divisions actually grew in the latest financial year Bloomberg. However, the audit division's ethical crisis threatens to undermine that strength. The overall $2.1 billion in annual revenue masks a fragile business where consulting weakness offsets gains elsewhere Bloomberg.
KPMG May Seek Help From Its Global Parent
Reports suggest KPMG Australia has sought financial assistance from KPMG International to stay solvent amid restructuring and scandal fallout SSB Crack. Observers expect additional job cuts beyond the current 400 before stability returns. The firm is betting that cost cuts, restructuring, and a gradual recovery in market demand will restore profitability Bloomberg.
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