New reports claim that KPMG Australia is laying off over 1,000 employees
KPMG Australia has said no decisions have been made on job cuts, even as reports emerged the firm is planning to sack dozens of partners and more than 1,000 staff as it grapples with the fallout from its audit misconduct scandal.
"As part of our planning for FY27, we are reviewing our operating model, cost base and workforce needs. It is important to note that no decisions have been made regarding any specific measures or potential impact on roles," a spokesman told the Sydney Morning Herald.
"We recognise these discussions can create uncertainty, and as decisions are made, we will communicate with our people first and in a respectful way. We are determined to make responsible decisions that position the firm for a sustainable future."
The statement came after the Australian Financial Review reported this week that KPMG Australia plans to lay off dozens of partners and 1,000 staff in September.
The cuts represent more than 10% of its workforce, and are expected to be felt hardest within its advisory business.
According to the AFR, the planned redundancies are a direct response to the revenue problem created by the scandal, which has seen the firm banned from bidding for public sector contracts at the federal level and in New South Wales and Victoria until at least late September. Private sector bookings have also shrunk.
Visitors from KPMG International
Meanwhile, the firm's global leadership has also weighed in this week, with KPMG International chairman Bill Thomas and incoming chairman Gary Wingrove travelling to Australia to meet with partners and clients.
A spokesman confirmed the visit to the SMH, saying the two executives were in the country to support newly appointed local chief executive John Sams.
"Gary and Bill will be meeting partners and clients during an important time for the firm. This strategic visit underscores the support provided by KPMG International as the Australian firm resets its approach to governance and culture and embeds new leadership," the spokesman said.
The AFR reported the global executives have been operating out of a conference room in the firm's Melbourne office, which has been internally likened to a war room, holding partner meetings in Sydney and Melbourne this week.
Impact of misconduct scandal
The job cuts are expected to proceed following Sams' appointment last week.
The AFR reported he plans to move within a month, though the firm is proceeding cautiously given the audit division's busy season, preparations for a second parliamentary hearing, and the ongoing presence of KPMG International executives in Australia.
The misconduct scandal, which centres on allegations that audit partners misused confidential client data and leveraged conflicted relationships to win work, has dealt a significant blow to the firm's client relationships.
Property giant Lendlease is ending its 68-year relationship with KPMG over the scandal, while Macquarie is also reviewing the process by which the firm won its $75 million-a-year audit contract last year, according to the AFR.
Partners were told earlier this month their pay for the last financial year would likely be cut by 20%, representing average losses of around $144,000 based on average annual partner distributions of $717,000 for 2024-25.
