KPMG Australia To Cut 400 Jobs As Consulting Slowdown Deepens

KPMG Australia said on Monday that it will cut close to 400 jobs, as slowing demand for consulting services and the fallout from a client confidentiality scandal weigh on the firm.

According to a statement cited by Bloomberg, the consultancy will reduce its headcount by more than 5%, affecting 360 employees and 27 partners in its consulting and business services divisions.

The firm said the decision followed a review of its costs and workforce needs, citing continued economic weakness, difficult market conditions and the impact of ongoing conduct and whistleblower issues. KPMG added that it is also restructuring parts of its organisation to build more integrated teams aligned with its global advisory operations.

Revenue And Partner Pay Decline

KPMG Australia, which serves more than 13,000 clients, reported a one per cent drop in total revenue to A$2.26 billion (about $1.6 billion) for the year. Consulting, its biggest revenue stream, fell 17% to A$632 million. Average pay for equity partners dropped 13% over the same period, the firm said.

CEO John Sams, who recently took charge, said he expects subdued economic growth to continue until at least 2028. He pointed to multiple pressures on the business, including the growing use of artificial intelligence, reduced government spending on consulting services and the continuing impact of the scandal. Sams acknowledged the firm's own shortcomings and said work was underway to rebuild trust with clients. He added that several internal and external reviews are expected to conclude in the coming months, with their findings feeding into the firm's next steps.

KPMG Australia has faced mounting scrutiny in recent months over allegations that it used confidential information from clients, including property developer Lendlease Group, to win business from rival companies. The claims drew sharp criticism from clients. Earlier this month, Optus chairman John Arthur told a parliamentary hearing that the firm had committed what he called an "egregious breach" of its obligations.

The controversy led to a string of leadership changes at the firm. Former chairman Martin Sheppard was among several senior executives who left, with the firm's general counsel and human resources chief among the more recent departures.

The episode has intensified scrutiny of Australia's audit and consulting industry, following a series of misconduct cases involving other major professional services firms. The Australian government has since proposed reforms that would expand regulatory powers and increase penalties for violations in the sector.