KPMG Australia Rejects Reports of Planned Job Cuts
Synopsis
The firm said no decision has been made on potential layoffs following media reports of a 1,000-job reductio
Key Highlights
- KPMG Australia said that no decision has been finalised on job cuts.
- The statements come after a media report, that the firm plans to cut around 1,000 jobs, or 10% of its workforce.
- The company is evaluating its operational model, expenses and workforce requirements, the firm said.
KPMG Australia said on Thursday that it has not yet decided on potential job cuts after the Australian Financial Review (AFR) reported that the firm plans to get rid of about 1,000 positions, or 10% of its employees due to an audit misconduct scandal.
Details of the proposed job cuts were communicated to handpicked partners this week, with leadership telling them that they must either support the new local management team or exit the firm, according to the report.
Firm Reviewing Workforce Needs
The firm is assessing its operating model, cost base and workforce requirements, a KPMG spokesperson said.
No decisions have been made on which measures to implement or how they would impact roles, the spokesman said, noting that KPMG has been looking at a variety of options to put itself in a stronger position for future threats.
The firm further added in its statement that Global Chairman and CEO Bill Thomas along with Chief Operating Officer Gary Wingrove are also in Australia to meet partners and clients this week.
Audit Scandal Under Investigation
KPMG has been under pressure since whistleblower allegations in March suggested that KPMG had pocketed sensitive client details and used them to assist with winning audit businesses.
Allegations are that Lendlease and Optus data was shared among staff bidding for audit work at Westpac, Dexus and Telstra. The company has since lost several senior figures including its chairman, CEO and audit chief. KPMG appointed John Sams as CEO last week.
KPMG is also under investigation from the Australian government, the Australian Securities and Investments Commission (ASIC), the Tax Practitioners Board and Chartered Accountants ANZ. The company continues to be banned from competing for new federal government contracts until the end of September.
Source: Reuters
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
You Might Also Like
Berkshire Unveils $4.3B Alphabet Bet, Cuts Apple
Google Greenlights Selected Cryptocurrency Ads, Paving Way for Spot Bitcoin ETF Promotions
