KPMG Australia announced on August 24 it will reduce its workforce by approximately 5%, slashing around 360 employees and 27 partners mainly in consulting and business services divisions [1, 2, 3]. This follows a sharp 17% drop in consulting revenue, attributed largely to losing government contracts, amid an overall 1% revenue fall to about A$2.26 billion (US$1.6 billion) for the year ending June 2026 [1, 2, 3].
The firm’s revenue grew in four of its five divisions, including deal advisory, tax and legal, audit and assurance, and mid-market/private client services, but not consulting where the downturn has been steep [2, 3]. KPMG Australia is under intense scrutiny since March 2026, when whistleblower allegations emerged publicly in Parliament accusing staff of misusing confidential client information to win audit contracts [1, 2, 3]. Senator Deborah O'Neill first raised the accusations, prompting parliamentary inquiries and multiple whistleblowers to come forward [3].
The Australian government barred KPMG from bidding on new federal contracts until September 30, 2026, escalating the firm’s challenges [2]. KPMG’s internal investigation, dating back to 2024, was criticized for lacking sufficient rigor to address the misconduct claims [3].
In July 2026, John Sams was appointed CEO during a leadership overhaul. He acknowledged “failings” and said the firm needed to “rebuild trust” while navigating “economic and market challenges” [2, 3]. Sams warned the outlook remains difficult: “We expect difficult market conditions to continue in FY27 and beyond,” and said “economic growth is expected to remain subdued until at least 2028, affecting client investment and extending decision-making timeframes” [3].
KPMG plans to simplify its organizational structure by creating more integrated teams aligned with its global advisory services [1, 2]. The workforce reduction and restructuring are part of efforts to stabilize after the scandal and revenue declines.
The firm remains barred from winning new federal contracts until the government’s September 30 deadline, marking a critical upcoming milestone in the company’s recovery.
