KPMG Australia Cuts 500 Jobs as Audit Scandal Deepens
Synopsis
KPMG Australia is cutting about 500 partner and staff roles as client losses, revenue pressure and the fallout from its audit scandal intensify.
KPMG Australia announced that it will shed about 500 jobs as the accounting firm tries to deal with client losses, a near collapse of its consulting revenues, and intense scrutiny of an audit scandal involving disclosure of confidential client information
The layoffs involve 50 partners and 450 staff working directly with clients. Talks with the affected partners began this week, and staff will be made redundant shortly, according to reports on 19 August.
Leadership exits follow client-data allegations
The chairman, Martin Sheppard, and the national audit leader, Julian McPherson, both left the firm in June, and the chief executive, Andrew Yates, resigned in May.
The scandal erupted after the National Audit Office found that KPMG partners had accessed and shared confidential client information to gain an advantage over competitors in audit work. The Public Accounts Committee was told details of allegations by whistleblowers last month, during a meeting which included evidence from Lendlease and Optus.
The new chief executive officer, John Sams, said that the firm’s investigation into the whistleblower allegations was inadequate. The Australian Securities and Investments Commission is investigating KPMG, and there is a parliamentary inquiry into the allegations and KPMG’s response.
Several major clients have reviewed their relationships with the big four accountancy firms. The parliamentary committee heard concerns from Westpac, Macquarie, and Optus.
Layoffs after Revenue Surge
The accounting giant posted revenues of $A$2.315 billion in revenue for FY25, a drop from A$2.386 billion for FY24, according to its Impact Report for FY25. Consulting revenue dropped 18 percent to $A$749 million, while Audit & Assurance revenue rose by 7% to A$365 million.
As of 30 June 2025, the company employs 8,967 people in Australia, Fiji, and Papua New Guinea. Therefore, the current 500-job loss is a significant percentage of its 2025 staff.
Government jobs were also a problem as KPMG agreed to a pause in new contracts with Commonwealth departments and agencies until 30 September 2026 while the government reviews its governance, culture, ethics, and integrity protocols.
According to June figures, KPMG earned more than $A$650 million in federal government contracts. New federal contracts decreased from A$637 million for the 2024 financial year compared to $A$348 million for 2025. They are also on par with Deloitte, PwC, and EY.
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
