KPMG Australia has not made a decision on job cuts, after the Australian Financial Review reported that the firm is preparing to lay off around 1,000 staff, or roughly 10% of its total workforce, amid a misconduct scandal in its audit practice. A KPMG spokesperson said the firm is reviewing its business model, cost structure, and workforce needs, and confirmed that no decisions have been made on any measures or the impact on jobs. The firm is considering a range of options to be ready for future challenges. Meanwhile, the AFR reported that KPMG Australia executives informed some partners this week about a plan to eliminate positions, and asked them to support the new leadership team, with those not ready to move forward with the firm potentially needing to resign. In addition, Bill Thomas, Global Chairman and CEO of KPMG, and Gary Wingrove, Chief Operating Officer, are visiting Australia this week to meet with partners and clients. KPMG has faced intense pressure from the Australian government and major clients since a whistleblower alleged in March that the firm used confidential client information to win high-value contracts. The allegations involve the sharing of information about Lendlease and Optus among staff who were bidding for audit work with Westpac, Dexus, and Telstra. Since the scandal broke, several senior executives have resigned, including the chairman, CEO, and head of audit. Last week, KPMG appointed John Sams, a partner from the business and transactions advisory group, as its new CEO. KPMG is currently under investigation by multiple bodies, including the Australian government, the Australian Securities and Investments Commission, the Tax Practitioners Board, and Chartered Accountants ANZ. Additionally, KPMG has been barred from bidding on new federal government work until September.
Misconduct scandal and investigations by multiple bodies, plus potential job cuts due to reputational damage.