KPMG Australia weighs hundreds of job cuts after audit leak scandal

KPMG Australia was preparing to cut hundreds of jobs and reduce partner pay by as much as 20% as the fallout from its audit leak scandal pushed the firm into a deeper cost reset. The operating review was not yet final, but the potential cuts could eventually top 1,000 roles at a business with about 10,000 people and more than 600 partners across Australia.

The review came after a string of senior departures that left the local practice without key leaders. Andrew Yates resigned effective immediately on May 29 after KPMG said the whistleblower process and management-led investigations were his ultimate responsibility, and chairman Martin Sheppard resigned on June 23. KPMG said it would appoint its first independent chair and commission a retrospective external review of its whistleblowing system, a signal that the firm was treating the scandal as more than a personnel problem. The underlying issue involved misuse of confidential client information, and the fallout has now moved from governance into payroll and headcount.

Australia’s corporate regulator opened a formal investigation into KPMG Australia in May and widened its scrutiny in early July to audit conduct complaints across KPMG, Deloitte, EY and PwC. That left the firm dealing at once with leadership churn, regulatory pressure and reputational damage while it weighs how far to push cost reductions without further weakening service lines that rely on tight staffing and steady utilization.

The commercial backdrop has also deteriorated. Federal government tender records showed new Big Four awards in Australia fell to A$348 million in 2025 from A$637 million in 2024, a sharp drop that underscored how quickly public-sector buyers have been moving away from the firms. For KPMG partners, that matters because a weaker pipeline of work usually feeds straight into tougher choices on staffing, promotion pacing and margin targets.

A KPMG spokesperson said the firm was evaluating “a range of options to ensure the firm remains well positioned for the challenges ahead.” At a practice of this size, that review now reaches beyond a temporary savings exercise and into the shape of the business itself.