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KPMG Australia reduces workforce by 5% following major audit scandal and slowing consulting demand

KPMG Australia is cutting approximately 5% of its workforce, including 27 partners and 360 employees, to address the fallout of a major audit scandal and slowing demand in its consulting business. The firm confirmed the misuse of internal documents by staff to secure audit contracts, a move that has led to an ongoing parliamentary inquiry. John Sams, the CEO of KPMG Australia, stated that the decision was made after reviewing costs and future workforce needs amid continued economic weakness and difficult market conditions. While revenue grew in four of the firm's five core divisions, the advisory business saw a decline of 16.9% over the last year. The layoffs are intended to limit financial damage and rebuild trust after the firm's failings. Remaining staff will see a 13% pay cut. The firm faces a multi-year fallout as corporations review whether to award new audit work to a firm whose reputation has been impacted by the misuse of confidential client information.

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