Consulting Sector Job Cuts
KPMG Australia to Cut 387 Jobs Amid Warning of Prolonged Economic Downturn
KPMG Australia is cutting about 5% of its workforce as economic conditions remain weak. The accounting firm will lay off 27 partners and around 360 employees, mostly in consulting and business services Market Screener. Revenue dropped 1% to A$2.257 billion for the year ending June 2026, as governments slashed spending on consultants.
CEO John Sams warned that weak economic growth will persist through at least 2028 Market Screener. This slowdown means clients will spend less money and take longer to make decisions about big projects. KPMG is bracing for continued soft market conditions next year.
Consulting and Services Feel the Biggest Hit
The job cuts will fall hardest on KPMG's consulting and business services divisions Market Screener. These areas depend on companies hiring external experts to solve problems. But as firms tighten budgets, they're doing more work with fewer outside advisors. The 27 partner layoffs represent senior-level roles being eliminated.
Government Spending Pullback Drove the Decline
Australian governments significantly reduced their use of consultants over the past year Market Screener. Public sector work is a major revenue stream for firms like KPMG. When governments cut budgets, consulting firms lose major clients overnight. This government pullback was the main driver behind KPMG's 1% revenue decline.
Economic Growth Expected to Stay Weak for Years
KPMG's CEO warned that Australia's economy won't recover meaningfully until at least 2028 Market Screener. Slow growth means fewer new projects and less client spending on advisory services. When growth stalls, companies delay major decisions and investments. This extended weakness creates an ongoing hiring freeze across professional services.
A Wider Trend Across Professional Services
KPMG's cuts reflect pressure across Australia's consulting and accounting sectors Market Screener. Big firms are adjusting headcount as economic conditions soften. The firm's A$2.257 billion revenue shows that while KPMG remains large, growth has stalled. These layoffs signal that weak conditions aren't temporary — management expects years of struggle ahead.
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