KPMG Australia is cutting nearly 400 jobs amid weaker consulting demand, difficult economic conditions and the fallout from a whistleblower scandal over the alleged misuse of confidential client information. Senior audit partners allegedly misused confidential client information to win business.
The consultancy giant will reduce its workforce by about 5%, cutting 360 employees and 27 partners across its consulting and business services, as per a statement. KPMG Australia, in a statement, said, “KPMG has reviewed its costs and future workforce needs in response to continued economic weakness, difficult market conditions and the impact of the firm’s conduct and whistleblower matters.” The firm also mentioned how the focus is on streamlining parts of the organisational structure to create more integrated teams and better align them with its global advisory services.
As part of KPMG Australia CEO John Sams’ statement he mentioned, “after careful consideration, we have made the difficult decision to reduce our workforce and restructure parts of the firm. This is not a decision that has been taken lightly, and we know it will have a very real impact on people. With demand for consulting remaining weaker, most of the roles affected will be in our Consulting business. Changes to our business and the professional services landscape have also reduced the need for some roles in Business Services. Our immediate focus is on treating everyone impacted with care, dignity and respect. We are providing practical support and making wellbeing support central to the process. We also recognise how unsettling this will be for colleagues across the firm, and we will continue to communicate openly and support them through this period of change. These changes are intended to put the firm on a more sustainable footing and ensure we remain aligned with the needs of our clients. We will keep assessing the operating environment and respond thoughtfully as circumstances change. For more than 130 years, KPMG has helped Australian organisations solve difficult problems and supported confidence in our capital markets. The changes announced today are an important step in the longer work of renewing and rebuilding our firm. Several internal and external reviews will be completed in the coming months. Their findings will inform the next phase of our Action Plan and help ensure we take all necessary action. We know there is more to do, and we will continue that work with openness, care and determination – focused on supporting our people, serving our clients and building a stronger, more trusted firm for the future.”
Experts believe KPMG Australia’s nearly 400 job cuts are a warning sign for the consulting industry: the sector is being squeezed from multiple directions-weaker demand, reduced government spending, reputational risks and the rapid adoption of AI.
KPMG Australia Layoffs: Firm To Cut 400 Jobs Amid Scandal, Slowing Consulting Demand
