KPMG Australia will cut around 360 employees and 27 partners, reducing its workforce by about 5% as weaker consulting demand, lower government business and the fallout from its conduct and whistleblower controversy put pressure on the Big Four accounting firm.
Most affected employee roles will be in Consulting, although some Business Services positions will also go. KPMG is also beginning consultation over a small number of award-based roles and reorganising parts of its advisory operations.
Who is affected by the KPMG job cuts?
KPMG says Consulting will bear most of the approximately 360 employee reductions because demand remains weak. The firm is also cutting 27 partners, while changes across professional services have reduced the need for some Business Services positions.
The company has not published a detailed breakdown identifying every affected team or location. It says practical and wellbeing support will be provided to people leaving the firm.
Why is KPMG Australia cutting jobs?
The cuts follow a review of KPMG’s cost base and future staffing requirements. The firm has pointed to continued economic weakness, difficult market conditions, softer consulting demand and the impact of its own conduct and whistleblower matters.
Government consulting is another pressure. Australia’s major professional services firms have faced greater scrutiny and lower government consulting expenditure following industry controversies. The KPMG reductions also come during a wider period of corporate restructuring, with Coles cutting hundreds of Australian corporate roles as part of an outsourcing and technology overhaul.
KPMG revenue falls, but four divisions grow
KPMG Australia reported FY26 revenue of about $2.257 billion, down around 1% from the previous year and below expectations.
The headline decline, however, does not tell the whole story. Four of KPMG’s five main divisions grew. Audit & Assurance generated $405 million, with revenue up 11%, while Tax & Legal generated $268 million and grew 10.9%.
Mid-Market & Private recorded $449 million in revenue, Deal Advisory & Infrastructure $342 million and Consulting $632 million. Consulting was the major weak point, showing why the workforce reductions are concentrated there rather than evenly across KPMG.
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What is the KPMG audit and whistleblower controversy?
The restructuring follows months of scrutiny over allegations involving confidential client information and KPMG’s handling of concerns raised by a whistleblower.
In March, Labor senator Deborah O’Neill presented allegations to parliament that confidential Lendlease board material had been used to support bids for major audit tenders involving Westpac and Dexus.
The controversy subsequently triggered wider parliamentary scrutiny involving current and former KPMG figures and raised questions about confidentiality, governance, audit independence and how the whistleblower’s concerns were initially handled.
KPMG has acknowledged failings and launched governance and cultural changes. Its measures include stronger independent oversight, reviews of whistleblower processes and tighter controls around confidentiality and audit pursuits. Details are available through KPMG Australia’s official Action Plan.
KPMG is also reorganising its business
The changes go beyond redundancies. KPMG’s Mid-Market & Private deals team will move into Deal Advisory & Infrastructure, while its advisory team will join Consulting, bringing the Australian structure closer to KPMG’s global advisory model.
KPMG is continuing to invest significantly in technology and build its AI capabilities. AI has not been identified as the direct cause of these layoffs, but KPMG says technology and changing client expectations are reshaping professional services. Similar workforce questions have emerged elsewhere in corporate Australia, including WiseTech’s major workforce reduction as it expands its use of AI.
Could KPMG Australia cut more jobs?
The current 5% reduction may not necessarily be the final change. KPMG is conducting internal and external reviews following the whistleblower allegations, with findings expected to influence the next stage of its action plan.
Chief executive John Sams has also warned that difficult market conditions are expected to continue through FY27 and beyond. KPMG expects economic growth to remain subdued until at least 2028, potentially delaying client investment and business decisions, while government spending on consultants remains lower.
Despite the pressures, KPMG says its employees served more than 13,000 clients during FY26. The key questions now are whether consulting demand recovers, whether KPMG can rebuild trust with governments and corporate clients, and whether the ongoing reviews lead to further workforce or governance changes.
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