KPMG Australia is preparing to cut up to 400 jobs by the end of this month as it deals with the fallout from its confidential data misuse scandal and an extended ban on bidding for federal contracts, The Australian Financial Review reported.
Known internally as “the reset”, the redundancies will mainly affect consulting and internal business services.
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The planned reductions follow the loss of about 400 positions in August under “Project Vector”, below the original target of 450.
Together, the cuts would affect about 800 of KPMG Australia’s 9,000 employees, or roughly 9% of its workforce.
The reductions remain smaller than those at PwC Australia, which lost about one-third of its revenue, partners, and employees after a tax partner leaked confidential Treasury information, the publication added.
KPMG’s public sector business is facing further pressure after the federal government extended its ban on the firm bidding for new work until the end of February.
The company’s defence business has been particularly affected. It previously generated more than A$300m ($210m) a year but produced about A$150m last year.
Supported by long-term contracts, the division generated less than A$60m in billings during the first four months of the 2026–27 financial year. It is expected to fall well short of last year’s result.
Meanwhile, KPMG is also seeking to sublease two of the three floors at its Canberra office.
KPMG International is expected to provide financial support to the Australian partnership by next month.
Earlier estimates suggested the firm would seek up to A$100m in emergency loans and a partial or full waiver of its more than A$100m annual global levy.
The crisis began with allegations that audit partners misused confidential client information and conflicted relationships to win work. It deepened following scrutiny of the firm’s handling of the misconduct and the whistleblower who exposed it.
