Scandal-hit consultancy firm KPMG slashes hundreds of jobs after audit and whistleblower conduct hits revenue

A major consultancy firm under fire for auditing practices will cut hundreds of employees from its local workforce.

KPMG revenue fell after it was revealed some executives had misused confidential board papers to win new audit contracts, and mistreated a whistleblower.

The firm was subsequently suspended from applying for government contracts.

KPMG, which is one of the top four firms behind Deloitte, PWC and EY, revealed on Monday that its annual revenue fell one per cent to $2.5 billion in fiscal 2026.

A continuation of soft market conditions in 2025/26, as well as a continued reduction in the use of consultants by governments, resulted in a 16.9 per cent decrease in revenue for the consulting business.

After reviewing its costs and workforce and the impact of the firm’s conduct and whistleblower matters, it will cut jobs by five per cent.

The firm will cut 27 partners and about 360 employees, mostly hitting its consulting and business services arm.

The outlook for the new year remained difficult, but while revenue was below its expectations, four out of its five businesses grew, new chief executive John Sams said.

Revenue for its audit, assurance, tax and legal arms rose 11 per cent and 10.9 per cent, respectively.

“This result reflects the resilience of our business and, above all, the commitment of our people in a very challenging year,” Sams said.

“We will continue to monitor performance closely, act when needed and consider carefully how the firm needs to be set up for the future.”

KPMG has 297 active federal contracts worth $653 million, but has been banned from applying for federal government contracts until at least the end of September.

That is when the finance department expects to have completed its own review of its conduct.

The firm has been engulfed by an audit leak scandal since it was grilled by a federal government parliamentary committee hearing in June.