KPMG Australia To Cut Nearly 400 Jobs Amid Scandal and Weak Market.

August 24, 2026

2 min read

KPMG Australia has announced plans to reduce its total workforce by approximately 5%, affecting 27 partners and nearly 360 staff members. The decision comes as the accounting and advisory giant navigates a combination of weak macroeconomic conditions and severe internal reputational fallout.

According to company statements released on Monday, the majority of the job cuts will be concentrated within its consulting and business services arms.

Leadership Acknowledges “Own Failings”

The firm continues to endure intense public and regulatory scrutiny following whistleblower allegations that personnel misused confidential client information to secure lucrative audit contracts. The scandal prompted a sweeping leadership overhaul, culminating in the appointment of John Sams as CEO.

“We recognise the challenges created by our own failings, and the work we must continue to do to rebuild trust. While these conditions are likely to persist, we remain focused on what we can control.”
— John Sams, Chief Executive Officer, KPMG Australia

Sams further cautioned that Australia’s economic growth is expected to remain subdued until at least 2028, leading clients to delay capital investments and extend decision-making timelines.

Financial Impact and Divisional Performance

For the fiscal year ended June 2026, KPMG Australia’s total revenue declined 1% to A$2.26 billion. The firm’s consulting division suffered a sharp 17% revenue contraction, largely driven by reduced corporate spending and a freeze on new federal contracts. Under a voluntary agreement with the Australian government, KPMG will not bid for new federal contracts until at least September 30 while independent reviews into its culture, ethics, and governance remain ongoing.

Despite the overall decline, four of KPMG Australia’s five core operational divisions recorded revenue expansion over the past fiscal year:

Tax and Legal: Increased by 11%
Audit and Assurance: Increased by 11%
Mid-Market and Private Enterprise: Increased by 6.4%
Deal Advisory and Infrastructure: Increased by 3%

To streamline costs and adapt to lower client spending, KPMG Australia plans to simplify its organizational hierarchy and integrate operational units more closely with its global advisory network.

Written by

Muneeba

Muneeba Zaman is a Karachi-based digital content creator and social media specialist. She creates business, tech, AI, and digital marketing content for Headline Recorder, with a focus on clear storytelling, brand consistency, and creative direction.