KPMG Australia is considering major cost-cutting measures that could include hundreds of job losses and lower pay for partners, according to a report by the Australian Financial Review.
The consulting firm is still dealing with the effects of an audit leak controversy that has damaged its reputation over the past year. The report said partner salaries The report indicated that partner salaries might decrease. The report indicated that partner salaries might decrease by up to 20%, although the exact number of job cuts remains undecided. The report indicated that partner salaries might decrease by up to 20%, while the final number of job cuts has not yet been decided. People familiar with the discussions said more than 1,000 roles could eventually be affected.
A spokesperson for KPMG Australia said the company is reviewing several options to prepare for future challenges. These include looking at its business structure, operating expenses, and workforce requirements. The spokesperson stated that the company has not yet made any final decisions regarding specific actions.
The firm has faced serious allegations from a whistleblower who claimed that it used confidential client information to secure valuable consulting work. A whistleblower has made serious allegations against the firm, claiming that it used confidential client information to secure valuable consulting work. to help secure valuable consulting work. KPMG has admitted it did not properly handle the whistleblower’s complaint. The company has now launched a fourth internal investigation after earlier reviews failed to confirm any misconduct.
The controversy has also led to major leadership changes. Several senior executives have left the firm, including its chairman, chief executive, and audit leader. KPMG Australia employs around 10,000 people, including more than 600 partners.
The company is also facing increased regulatory attention. In May, Australia’s corporate regulator opened a formal investigation into KPMG Australia. More recently, the regulator expanded its review to include audit conduct complaints involving all of Australia’s Big Four accounting firms.
The audit leak issue became public in March after Australian Labor senator Deborah O’Neill used parliamentary privilege to raise concerns. The allegations were based on claims made by a former senior KPMG executive, who reported the matter to the company in 2024.
