KPMG Australia job cuts and revenue decline amid audit scandal and whistleblower fallout
Consensus Summary
KPMG Australia is cutting 27 partners and about 360 employees (5% of its workforce) amid revenue declines and fallout from an audit scandal involving misuse of confidential client data and mishandling of a whistleblower complaint. The firm’s revenue dropped from $2.28 billion the previous year to $2.26 billion in the 2026 financial year, though 7NEWS reports a 1% drop to $2.5 billion in fiscal 2026, creating a contradiction. While consulting revenue fell sharply, audit and assurance revenue grew by 11%, and tax and legal revenue rose by 10.9%. KPMG faces ongoing scrutiny, including a ban on new federal government contracts until at least the end of September, and internal reviews are expected to conclude in the coming months. The scandal has led to high-profile departures, including former CEO Andrew Yates and chair Martin Sheppard, and the firm is restructuring to align with global advisory services while addressing trust issues.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- KPMG Australia will cut 27 partners and about 360 employees (5% of workforce)
- Revenue fell from $2.28 billion the previous year to $2.26 billion in the 2026 financial year
- Audit and assurance revenue grew by 11%
- Tax and legal revenue grew by 10.9%
- KPMG has more than 13,000 clients
- Internal and external reviews will be completed in the coming months
- Five former KPMG partners were questioned in a federal inquiry
- KPMG has 27 partners and about 360 employees being cut
Points of Difference
Details reported by only one source:
- Job cuts were announced in March after a whistleblower complaint about misuse of confidential board papers from Lendlease was shared in parliament
- KPMG was suspended from government contracts due to allegations of misusing client data and mishandling whistleblower complaints
- KPMG Australia CEO John Sams expects further revenue declines
- KPMG will restructure its mid-market and private deals team to join deal advisory and infrastructure
- KPMG will begin consultation on 'a small number of award-based roles'
- Economic growth is expected to remain subdued until at least 2028
- KPMG was grilled in camera by a federal inquiry earlier this month
- The Business program airs Mondays to Thursdays at 8:44pm on ABC TV after the Late News
- KPMG has faced scrutiny since March over whistleblower allegations
- KPMG revenue fell 1% to $2.5 billion in fiscal 2026 (contradicts ABC’s $2.26B figure)
- Consulting revenue decreased by 16.9% in 2025/26
- KPMG has 297 active federal contracts worth $653 million but is banned from applying for new federal contracts until at least the end of September
- The scandal began after a June parliamentary committee hearing
- KPMG was referred to the National Anti-Corruption Commission by Greens senator Barbara Pocock
- Former CEO Andrew Yates and chair Martin Sheppard have left amid the scandal
Where the reporting differs
Details that conflict, or appear in only some outlets:
- ABC states KPMG’s revenue fell from $2.28 billion to $2.26 billion in the 2026 financial year, while 7NEWS claims revenue fell 1% to $2.5 billion in fiscal 2026
- ABC mentions job cuts were announced in March, but 7NEWS does not specify a month for the announcement
- ABC says KPMG is cutting 5% of its workforce, while 7NEWS does not explicitly state the percentage but confirms 27 partners and 360 employees are being cut
- ABC states KPMG’s ban on government contracts is not explicitly dated, while 7NEWS specifies it is banned until at least the end of September
- ABC mentions a whistleblower complaint in March, while 7NEWS references a June parliamentary committee hearing as the scandal’s trigger
Source Articles
KPMG to cut almost 400 jobs after audit leaks scandal
Accounting firm KPMG says it will cut 27 partners and about 360 staff from its Australian arm, as well as revamp its structure, as it grapples with lower revenue from lost contracts following the audit leaks scandal.
Scandal-hit consultancy firm KPMG slashes hundreds of jobs after audit and whistleblower conduct hits revenue
The consultancy firm will cut dozens of partners and make major cuts to its workforce.
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