KPMG Australia has commenced workforce reductions affecting both partners and staff as the accounting giant grapples with the aftermath of an ongoing audit scandal.
According to a report in the Australian, “conversations” with nearly 50 partners are set to conclude on 21 August.
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The following week will see cuts extend to client-facing staff, with around 450 positions expected to be removed.
KPMG Australia’s reputation has suffered considerable damage following a series of governance breaches. These include the improper use of confidential client information to win business.
The Australian arm of the company has reportedly sought financial support from KPMG International to remain solvent, as the anticipated loss of revenue compounds already substantial personal borrowing levels.
Several senior figures have departed the company following the controversy, including CEO Andrew Yates, chairman Martin Sheppard and chief operating officer Eileen Hoggett – all of whom trained as auditors – alongside former head of audit Julian McPherson and audit partners Paul Rogers and Kim Lawry.
Across the sector, all four major accounting operators have seen a marked decline in government consulting contracts following an earlier controversy involving PricewaterhouseCooper’s tax division.
Notably, the current round of job losses at KPMG Australia will not extend to the audit division itself as these staff are considered essential to retaining existing clients.
The tax team has similarly been excluded from redundancies.
The controversy first came to light when Senator Deborah O’Neill used parliamentary privilege to reveal whistleblower claims alleging that senior audit partners had improperly obtained documents belonging to Lendlease in 2024.
At the time, KPMG’s senior leadership dismissed the whistleblower as a disgruntled former employee and terminated his employment. However, subsequent investigations have substantiated the majority of the claims.
