KPMG Australia is laying off hundreds of staff amid a major whistleblower-led scandal and slowing demand for consulting.
The Big Four firm plans to reduce its workforce by approximately 5%, KPMG Australia said in its annual earnings release on Monday.
That includes 27 partners and 360 employees. Most of the affected roles will be in the consulting business, the company said.
KPMG Australia employs roughly 10,000 people, including 600 partners, according to its website.
KPMG said it had made the decision regarding layoffs after reviewing its costs and future workforce needs in response to continued economic weakness, difficult market conditions, and the impact of its conduct and whistleblower matters.
Since March, KPMG has been battling whistleblower allegations that it misused confidential client information to bid for audit contracts.
KPMG Australia's CEO, audit boss, and chairman have since stepped down, and the firm has confirmed the misuse of internal documents by staff. There is an ongoing parliamentary inquiry into its conduct.
At a parliamentary hearing in Canberra on August 13, Deborah O'Neill, a Labor Party senator and chair of the committee investigating KPMG's conduct, said there "are many, many more who are contacting us and they are talking about a repeat of the same behaviour."
While revenue grew across four of KPMG Australia's five core divisions, its advisory business has slowed in 16.9% over the last year to June 30, KPMG said in the earnings release. Annual revenue was down 1% compared to the previous financial year.
John Sams, the CEO of KPMG Australia as of late July, said in a press release on Monday that he expects economic growth to remain subdued until at least 2028.
"We also recognize the challenges created by our own failings, and the work we must continue to do to rebuild trust," Sams said.
KPMG employs over 276,000 people worldwide, according to its latest global results. In April, the US branch of KPMG cut roughly 400 consultants in its advisory division amid slowing demand and lower attrition rates than expected.
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Polly Thompson is a senior reporter at Business Insider covering the consulting industry and the future of work trends. She also writes about how AI is transforming the workplace and covers the tech company, Dell. Get an alert whenever Polly publishes a story.Want to talk? Get in touch with Polly via the secure messaging app Signal (Polly_Thompson.89) or via email at [email protected]. We can keep sources anonymous.
