KPMG chief executive John Sams said 27 partners and 360 employees will be cut this week as the scandalised firm deals with a significant decline in its consulting business and the impending loss of audit work following the whistleblower scandal.
“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,” Sams said in a statement Monday morning.
Sams informed KPMG’s 9,000 employees in an all-staff call at 10.30 this morning.
The KPMG statement included references to its 2026 financial results which reported that revenue declined slightly to $2.26 billion due to a 17 per cent plunge in its largest business, consulting, which is bearing the brunt of these cuts. KPMG has been in turmoil since a whistleblower revealed partners of the firm had accessed confidential client data to win new business, a serious breach of trust.
The fallout from the scandal is also starting to impact on its business.
“We also recognise the challenges created by our own failings, and the work we must continue to do to rebuild trust,” Sams said.
“We need to be clear about the outlook. We expect difficult market conditions to continue in FY27 (financial year) and beyond.”
KPMG partners are already feeling the impact with the firm reporting that average equity partner pay dropped 13 per cent last year.
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