‘Decisions soon’: KPMG starts talks on staff purge

KPMG chief executive John Sams confirmed that the embattled firm has begun talks with senior partners who will be cut as part of a massive staff purge expected next week due to the whistleblower scandal engulfing the firm.

“I have been clear in recent communications with partners and our people that we are undertaking a process to review our cost base and workforce to ensure the firm is sustainable and well positioned for the future,” he told partners in an email on Wednesday evening.

“Conversations have commenced this week with impacted partners. No decisions have been made about staff roles at this point but, as I have said in previous communications, we expect to make those decisions soon.”

Internal sources have said this is when the firm is expected to announce as many as 1000 staff will be cut in response to the massive change of fortunes since KPMG confirmed whistleblower allegations that confidential customer information was used to try and win new audit business.

The Australian reported 500 staff will be cut, which is at the lower end of estimates in recent weeks.

“I am frustrated and sorry that we are all dealing with this speculation. I know it is unsettling for all of us, and our teams,” Sams said.

“I can’t comment any further until decisions are made but I expect to provide a further update next week.”

The planned job cuts come just one week after current and former KPMG executives were forced to front another public hearing into the scandal.

Sacked KPMG executive Eileen Hoggett was confronted with evidence showing she emailed a colleague about confidential documents stored in her locker.

Hoggett told the hearing she was still trying to ascertain the reason for her unprecedented sacking, and attested to the financial cost.

“I don’t get my accrued annual leave. I don’t get the retirement payment, which I contributed to as a partner for 21 years, and I did not get paid for the last month up until to the date of my expulsion. So (it’s a) significant financial penalty,” she said.

This week, the Australian Securities and Investments Commission’s (ASIC) revealed its probe into the whistleblower scandal at KPMG now includes companies controlled by the accounting and consulting giant , and potentially these companies’ directors.

The directors, who were on the boards of KPMG’s corporate entities since the initial complaint was made in 2024, include former NSW premier Mike Baird and senior KPMG executives.