Scandal-hit KPMG Australia reportedly taking on cost-reduction measures to ensure 'sustainable future'
Job cuts and partner pay reductions are reportedly being considered at KPMG Australia as the Big Four firm seeks to maintain a "sustainable future" while it faces the fallout from the audit leak scandal.
KPMG Australia is reportedly preparing to cut several hundred jobs, but sources told the Australian Financial Review that the redundancies could reach or even exceed 1,000 roles.
According to the AFR report, the redundancies will likely be spread out, and they will not be announced until a new chief executive officer steps in.
A KPMG spokesperson told the AFR that no decisions have been made yet, but confirmed that it is reviewing its "operating model, cost base, and workforce needs" as part of its planning for the 2026-27 financial year.
"We recognise that discussions of this nature can create uncertainty, and as decisions are made, we will communicate with our people first and in a respectful way," the spokesperson told the news outlet.
"Our focus remains on providing high-quality service to our clients, supporting our people, and making responsible decisions that position the firm for a sustainable future."
Pay cuts also reported
The reported job cuts at KPMG come amid talks that pay would be reduced for its partners.
The AFR reported that the broader partnership's pay for the 2026 financial year could be cut by 20%, which could amount to average losses of about $144,000 based on average annual partner distributions of $717,000 for 2024-25.
For the 2026-27 financial year, chief financial officer John Sams had told partners that pay would be lower by as much as 13%. Partners, however, believe that this could be as high as 30%, according to the AFR.
The cost-reduction moves from KPMG Australia come in the wake of an exposé alleging that the firm misused confidential client information to win audit contracts with other firms.
The fallout from the scandal has led to the exit of some of its high-ranking executives, including former CEO Andrew Yates and previous board chair Martin Sheppard.
It also prompted the federal government to temporarily bar new contract engagements with the Big Four firm.
KPMG Australia, which has about 9,000 employees and 700 partners, was already carrying out cost-reduction efforts prior to the scandal.
In March, it was reported that KPMG is offshoring 200 executive assistant roles to the Philippines in an effort to save $17 million annually.
