KPMG Australia has appointed John Sams as chief executive with immediate effect, placing a long-serving internal partner in charge as the firm prepares for potentially extensive job cuts and confronts the fallout from a confidential client-information scandal.
Hundreds of positions are expected to be reviewed, while internal estimates reported by Australian media suggest the eventual reduction could exceed 1,000 roles. KPMG has not confirmed a final redundancy figure.
Has KPMG confirmed 1,000 job cuts?
No. The figure remains a reported internal estimate, not an approved redundancy announcement.
KPMG says it is reviewing its operating model, cost base and workforce requirements while planning for the 2027 financial year. The firm has approximately 9,000 employees and 700 partners in Australia. Removing 1,000 positions would affect roughly 11% of its employee workforce.
No affected divisions, offices or employment levels have been identified. The final plan was reportedly delayed until a permanent CEO was appointed, leaving Sams to decide the scale, timing and structure of any reductions.
Who is John Sams?
Sams has a background in tax, corporate finance, infrastructure and commercial advisory work. These operations have not been implicated in the alleged misuse of confidential audit-client information.
He previously served as KPMG Australia’s chief financial officer and sat on its local board. Sams also became acting chief operating officer after Eileen Hoggett left the role in June 2026.
In its official announcement confirming John Sams as CEO, KPMG said he must strengthen leadership and culture while rebuilding confidence among employees, clients, regulators, governments and Parliament.
How was Sams selected?
Sams was reportedly interviewed alongside Asia-Pacific tax and legal head Ben Travers and national consulting managing partner Brad Miller.
A selection panel involving incoming chairman Michael Ebeid, KPMG special adviser Jennifer Westacott and company director Kerry Schott recommended Sams before the board approved his appointment on July 21.
The process caused concern among some partners. KPMG’s partnership agreement reportedly gives the national chairman responsibility for recommending a CEO, but that position had been vacant since Martin Sheppard resigned. Some employees also wanted an external leader without connections to the existing administration.
Why is KPMG considering job cuts?
The restructuring is not solely a response to the scandal. KPMG and other major consulting firms have faced weaker corporate advisory demand and declining revenue from government work.
Australian departments have historically been major customers of consulting groups. Increased scrutiny has encouraged agencies to review contracts and develop more expertise internally.
The scandal has added financial pressure. KPMG temporarily stopped bidding for some new government work, while its relationships with federal and state agencies remain under review.
The possible reductions follow a wider wave of restructuring, including job cuts affecting Nine Entertainment and its newspapers and Microsoft layoffs involving corporate and Xbox employees.
What happened in the KPMG scandal?
The allegations concern KPMG personnel accessing or sharing confidential information belonging to corporate audit clients and using it to pursue other business.
One investigated incident reportedly involved confidential Optus information being used during an attempt to secure Telstra’s external audit account. Such conduct raises serious concerns about client confidentiality, auditor independence and the fairness of audit tenders.
The whistleblower allegations were first raised internally in 2024 but became public after Labor senator Deborah O’Neill discussed them in Parliament in March 2026. KPMG later acknowledged that it had fallen short of expected standards.
Who has left or been disciplined?
Former CEO Andrew Yates resigned after the scandal escalated. Chairman Martin Sheppard and chief operating officer Eileen Hoggett also left their positions, while several senior audit partners departed. Senior partner Kim Lawry resigned shortly before Sams was appointed.
KPMG sanctioned seven employees and partners after an internal investigation substantiated part of the misconduct. Reported measures included warnings, reduced promotion opportunities, performance-rating changes and financial penalties reaching A$180,000.
Regulators, parliamentary investigators and government agencies continue to examine the allegations and KPMG’s response.
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How are clients and partners affected?
Lendlease, one of KPMG’s most significant long-standing audit clients, is reportedly preparing to appoint another auditor. Losing major clients can reduce audit revenue and restrict opportunities for associated work.
KPMG partners are also absorbing part of the financial impact. Partner distributions were reportedly reduced by about 20% for the 2026 financial year and could fall by as much as 13% in FY27. These figures concern partner earnings, not salaries for ordinary employees.
What should employees watch next?
Employees still need details about affected teams, consultation, voluntary departures, redeployment, severance arrangements and timing. KPMG has promised to communicate decisions to its workforce first.
Sams must also implement reforms covering governance, culture, ethics, training and internal controls. He is expected to engage with the parliamentary committee investigating the scandal, with another hearing scheduled for August 14.
His immediate challenge is to reduce costs without weakening audit quality while proving that KPMG’s promised cultural and governance changes will produce measurable results.
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