KPMG Australia’s revenue fell 1 per cent in the 2025-26 financial year. Photo: KPMG.
Disgraced accountancy giant KPMG Australia is slashing its workforce by 360 employees and axing 27 partners, after reporting a 1 per cent revenue loss in the last financial year.
The firm will also begin consultation on a small number of award-based roles, with the overall aim of reducing its staffing levels by 5 per cent.
KPMG’s 2025-26 revenue fell from $2.278 billion the previous year to $2.257bn.
It is citing weak demand for its services, which is likely to continue beyond the next 12 months, as the reason for the move.
Some of that can be put down to the firm’s corruption in misusing confidential client information for major audits to try to win more work – compounded by the abuse of a whistleblower for raising the issue.
Since then, some large corporations have been wary of KPMG, and government work has largely been suspended, although the firm still enjoys numerous lucrative Federal Government contracts.
Ironically, the auditing arm of the business grew 11 per cent, but consultancy revenue fell 16.9 per cent over the period.
Four of the five arms of the business saw revenue grow over the financial year, but with consultancy down, most of the employees being let go will be from that arm of the company.
KPMG’s new chief executive officer John Sams said the firm had reviewed its costs and future workforce needs in response to continued economic weakness, difficult market conditions and the impact of its “conduct and whistleblower matters”.
The firm is also simplifying parts of its structure to create more connected teams and align more closely with KPMG’s global advisory services.
“This result reflects the resilience of our business and, above all, the commitment of our people in a very challenging year,” Mr Sams said in a statement.
“They continued to deliver outstanding work for more than 13,000 clients, while supporting one another through a difficult period for the firm. I am incredibly thankful for their hard work, professionalism and care.
“Our total revenue was slightly lower than last year, and below our expectations. At the same time, four of our five businesses grew, with particularly strong performances from Audit & Assurance, and Tax & Legal.
“We also continued to invest significantly in technology and build our AI capability, helping our people work more effectively and deliver better outcomes for clients.”
The CEO painted a somewhat stark outlook for the future, saying it expected difficult market conditions to continue past the current financial year.
“Economic growth is expected to remain subdued until at least 2028, affecting client investment and extending decision-making timeframes,” he said.
“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.”
He then announced the job cuts
“After careful consideration, we have made the difficult decision to reduce our workforce and restructure parts of the firm,” Mr Sams said.
“This is not a decision that has been taken lightly, and we know it will have a very real impact on people.
“With demand for consulting remaining weaker, most of the roles affected will be in our Consulting business. Changes to our business and the professional services landscape have also reduced the need for some roles in Business Services.
“Our immediate focus is on treating everyone impacted with care, dignity and respect. We are providing practical support and making wellbeing support central to the process.
“We also recognise how unsettling this will be for colleagues across the firm, and we will continue to communicate openly and support them through this period of change.”
The statement said the incoming changes were intended to put the firm on a “more sustainable footing” and ensure it remains aligned with the needs of its clients.
Several internal and external reviews will be completed in the coming months and will inform the next phase of the firm’s action plan.
KPMG has faced parliamentary inquiries since the corruption story broke, and has seen numerous executives sacked in the scandal’s continuing wake.
The firm retains a contract with the Federal Government to train rising Australian Public Service executives in leadership and integrity.
Original Article published by Chris Johnson on Region Canberra.
