KPMG Australia will eliminate approximately 360 employees and 27 partners as the firm faces a suspension from bidding on government contracts and navigates fallout from its audit business practices. The job cuts, representing about a five percent reduction in its local workforce, will primarily affect the consulting and business services division.
This decision follows a challenging fiscal year 2026 for the company, which reported a one percent decline in annual revenue, totaling $2.5 billion. New chief executive John Sams cited continuing difficult market conditions and a reduction in government consulting as factors contributing to a 16.9 percent decrease in revenue for the consulting segment. In contrast, the firm's audit and assurance and tax and legal divisions saw revenue increases of 11 percent and 10.9 percent, respectively.
KPMG has been barred from applying for federal government contracts until at least the end of September, pending a review by the finance department. Several state governments have also suspended dealings with the firm. The company's current federal contracts number 297, valued at $653 million.
The firm has been under intense scrutiny since June, following revelations before a federal parliamentary committee hearing that some executives allegedly misused confidential board papers to secure audit contracts. The scandal also involved mistreatment of a whistleblower who raised concerns about these practices.
As a result of the ongoing issues, KPMG has been referred to the National Anti-Corruption Commission by Greens senator Barbara Pocock. The scandal has led to the departure of several senior executives, including former chief executive Andrew Yates and chair Martin Sheppard. Mr. Sams indicated that the findings from ongoing internal and external reviews will inform the firm's future actions.