KPMG Australia to shed nearly 400 staff amid fallout from audit-leak scandal
KPMG Australia will cut 27 partners and about 360 employees, roughly 5% of its workforce, as revenue slips following contract losses tied to an audit-leak controversy.
KPMG Australia disclosed a plan to eliminate 27 partners and approximately 360 staff, representing about five percent of its total headcount, as part of a broader restructuring effort. Revenue for the 2026 financial year fell slightly to $2.26 billion from $2.28 billion the year before, and the firm expects further declines. The cuts target mainly the consulting arm, with the mid-market and private-deals team moving to deal advisory and the advisory group joining consulting to align with global structures.
The moves come after Labor senator Deborah O'Neill presented parliamentary allegations that KPMG audit partners accessed confidential Lendlease board papers to support bids for Westpac and Dexus, and after current and former partners were summoned to a federal inquiry over the handling of the whistleblower. KPMG sought financial assistance from its international network to stay solvent, and the firm pledged support and wellbeing resources for affected employees while continuing internal and external reviews.
Why it matters
The layoffs highlight how corporate misconduct allegations can quickly erode client trust and trigger significant job losses in a major professional services firm.
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