KPMG InternationalPrivate▼ Negative
Regulationrelevance
Audit leaks scandal leads to job cuts, partner pay reductions, and loss of public sector work.
KPMG Australia is assessing measures that could lead to several hundred redundancies and a reduction in partner pay of up to 20% as it responds to the financial impact of the audit leaks scandal. The job reductions are expected to be spread across the Big Four firm, with internal expectations indicating at least several hundred positions could be affected, and two sources told the Australian Financial Review that the total could reach or exceed 1,000. KPMG employs around 10,000 people in Australia, including more than 600 partners. The move follows the firm's public-sector arm agreeing not to bid for new Commonwealth and New South Wales public sector work until the end of September, amid softer demand from private-sector clients. KPMG Australia faces allegations it used confidential client data to win contracts, and several senior leaders have departed, including the chair, CEO, and audit head; the firm recently appointed Michael Ebeid as its first independent chair as part of governance changes aimed at rebuilding trust. Any announcement on job cuts is unlikely before a permanent CEO is appointed, with potential candidates including head of tax and legal Ben Travers, head of mid-market and private businesses Naomi Mitchell, and chief financial officer John Sams, who told partners last month that pay for the 2026–27 financial year could fall by as much as 13%, while some partners were told broader partnership pay for FY26 could be reduced by 20%.
Audit leaks scandal leads to job cuts, partner pay reductions, and loss of public sector work.