KPMG set to slash hundreds more jobs before Christmas
KPMG Australia is preparing to axe hundreds more staff within weeks as the fallout from its whistleblower scandal, and government work ban, continues to hit its business.
The embattled firm declined to comment on a report from the Australian Financial Review that up to 400 staff would lose their jobs, but sources confirm that KPMG’s consulting boss Brad Miller told staff of the cuts last week and said these employees will be out the door “within weeks”.
In August, KPMG Australia’s new boss John Sams flagged that more job cuts would be needed as he unveiled financial results for the previous year which showed a 17 per cent revenue decline for its consulting business.
“We need to be clear about the outlook. We expect difficult market conditions to continue in FY27 and beyond,” he said.
“Economic growth is expected to remain subdued until at least 2028, affecting client investment and extending decision-making timeframes. The professional services sector is also changing rapidly as client expectations evolve, AI reshapes the way services are delivered and government spending on consultants remains lower. We also recognise the challenges created by our own failings, and the work we must continue to do to rebuild trust.”
“While these conditions are likely to persist, we remain focused on what we can control. We will continue to monitor performance closely, act when needed and consider carefully how the firm needs to be set up for the future.”
That month, the firm announced 27 partners and 360 employees will lose their jobs in response to a significant decline in its consulting business and the impending loss of audit work following the whistleblower scandal.
Last month, the Department of Finance has extended its ban on KPMG bidding for new federal government work until February next year after an independent review concluded the firm should not be permanently banned from government work after a whistleblower revealed confidential client information was used to win new business.
The report recommended that the ban be in place until KPMG was proven to have implemented reforms to ensure whistleblower complaints are appropriately handled in future.
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Colin Kruger is a senior business reporter for the Sydney Morning Herald and The Age.Connect via email.
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