KPMG Australia weighs 1,000 job cuts amid audit scandal

KPMG's embattled Australia consultancy business is preparing to cut hundreds of jobs and reduce partner pay by as much as a fifth, the Australian Financial Review reported on Tuesday, as it contends with the fallout from an audit leak scandal. KPMG Australia has ‌faced whistleblower ⁠allegations ⁠that it used confidential client data to win lucrative contracts. There have been a number of high-level departures since the scandal, including the chairman, CEO and audit boss.

KPMG has admitted it has mishandled the whistleblower complaint and has launched a fourth internal investigation after previous ones failed to substantiate any wrongdoing.

Job cuts have yet ⁠to be ‌finalised, but they could exceed 1,000, AFR said, citing people familiar with the matter.


A KPMG spokesperson told ⁠the Australian daily that KPMG was evaluating "a range of ​options to ensure the firm remains well positioned ​for the challenges ahead".

The options included a review of the operating model, cost base and workforce needs, the spokesperson said, adding that no decisions on specific measures have been made yet.

Reuters was unable to reach a KPMG representative for comment outside ‌regular business hours.

KPMG has about 10,000 employees in Australia, including more than 600 partners, its website says.

Australia's ​corporate regulator ​launched a formal investigation ⁠into KPMG Australia in May and last week widened its scrutiny of the sector to audit conduct complaints at Big Four audit ​firms.

The audit leak scandal went public in March, when Deborah O'Neill, a senator from Australia's ruling Labor Party, used parliamentary privilege to raise issues that a whistleblower - a former senior executive - took to the company in 2024.