KPMG Australia is set to lay off dozens of partners and 1,000 staff in September, representing more than 10% of its total workforce. This decision comes after a visit from members of its global leadership team, who are working to manage the consequences of the local firm's audit misconduct scandal. The job cuts were disclosed to select partners, accompanied by a directive to either support the new local leadership, headed by CEO John Sams and chairman Michael Ebeid, or face departure.
These impending job cuts follow earlier reports indicating KPMG's preparations to reduce hundreds of jobs and cut partner pay by as much as 20%. The firm, which employs approximately 9,000 staff and has 700 partners, has been scrutinizing client bookings to assess the financial impact of the scandal and identify cost-cutting measures. The Australian arm of KPMG has also reportedly sought financial assistance from KPMG International to maintain solvency, due to anticipated revenue losses exacerbating existing high personal borrowing levels.
Workforce reductions have already begun, with discussions with nearly 50 partners scheduled to conclude by August 21. Subsequently, client-facing staff will be affected, with around 450 positions expected to be eliminated the following week. The firm's reputation has been severely damaged by governance breaches, including the improper use of confidential client information to secure new business. The audit division and tax team are explicitly excluded from these redundancies, as audit staff are deemed crucial for client retention.
Several senior executives have left the company in the wake of the controversy, including former CEO Andrew Yates, chairman Martin Sheppard, and chief operating officer Eileen Hoggett. The scandal initially surfaced when Senator Deborah O'Neill publicly revealed whistleblower claims in 2024, alleging that senior audit partners had improperly obtained documents from Lendlease. Although KPMG's leadership initially dismissed the whistleblower, subsequent investigations largely corroborated the claims.
