KPMG to cut almost 400 jobs after audit leaks scandal

Accounting firm KPMG is cutting hundreds of jobs after revenue fell as a result of a recent audit inquiry.

Accounting firm KPMG says it will cut 27 partners and about 360 staff from its local arm, and revamp its structure as it grapples with lower revenue from lost contracts following the audit leaks scandal.

The company's revenue fell from $2.28 billion the previous year, to $2.26 billion in the 2026 financial year, and KPMG Australia chief executive John Sams expected more revenue falls.

KPMG has been unable to retain most of its ongoing contracts after allegations KPMG audit partners misused client data and then mishandled a whistleblower's complaint about it.

In March, Labor senator Deborah O'Neill shared with parliament a whistleblower's allegations that confidential board papers from Lendlease were used to support bids for major audit tenders for Westpac and Dexus.

And earlier this month, the firm's current and former partners were hauled before a federal inquiry probing why the firm allegedly shared client information and ignored the whistleblower's allegations when they first surfaced.

The job cuts at KPMG's Australian arm were widely expected as the firm reportedly sought financial support from KPMG International to remain solvent.

KPMG is one of the "big four" accounting firms, which have taken a hit to their bottom line from getting fewer ongoing government consulting contracts, following the earlier tax leaks controversy at PricewaterhouseCoopers.

Mr Sams said in a statement the firm was cutting 5 per cent of its workforce, primarily in its consulting arm, "in response to continued economic weakness, difficult market conditions and the impact of the firm's conduct and whistleblower matters".

With demand for consulting remaining weaker, "most of the roles affected will be in our consulting business".

"Changes to our business and the professional services landscape have also reduced the need for some roles in business services," he said.

"Our immediate focus is on treating everyone impacted with care, dignity and respect. We are providing practical support and making wellbeing support central to the process."

The company will also restructure so that the firm's mid-market and private deals team joins deal advisory and infrastructure, while its advisory team joins consulting.

These changes would align KPMG Australia more closely with its global advisory services.