KPMG Australia is preparing to cut hundreds more jobs within weeks, with sources confirming cuts and an Australian Financial Review report saying up to 400 staff would lose their positions, as the firm continues to be hit by its whistleblower scandal and extended government work ban.
Consulting boss Brad Miller told staff last week that affected employees would be out the door “within weeks”, sources confirmed. The firm declined to comment on an Australian Financial Review report detailing the job cuts.
In August, new KPMG Australia boss John Sams flagged further redundancies as he announced results showing a 17 per cent revenue decline in the consulting business. “We need to be clear about the outlook. We expect difficult market conditions to continue in FY27 and beyond,” Sams said. “Economic growth is expected to remain subdued until at least 2028, affecting client investment and extending decision-making timeframes. The professional services sector is also changing rapidly as client expectations evolve, AI reshapes the way services are delivered and government spending on consultants remains lower. We also recognise the challenges created by our own failings, and the work we must continue to do to rebuild trust.”
That month, KPMG announced 27 partners and 360 employees would be made redundant in response to the consulting downturn and impending loss of audit work linked to the whistleblower affair.
Last month, the Department of Finance extended its ban on KPMG bidding for new federal government work until February next year. The extension followed an independent review which concluded the firm should not be permanently banned after a whistleblower revealed confidential client information had been used to win business. The review recommended the ban remain until KPMG demonstrates it has implemented reforms to properly handle whistleblower complaints.
Analysis
Why This Matters
- The job cuts affect hundreds of Australian workers in the professional services sector, adding to broader market uncertainty.
- The extended government ban signals ongoing distrust in KPMG’s governance, with implications for taxpayer-funded consulting contracts.
- The firm’s struggles highlight the lasting financial and reputational damage from whistleblower scandals in large consultancies.
Background
KPMG Australia has been under scrutiny since a whistleblower revealed that confidential client information from the Australian Taxation Office was used to pitch for new business. The scandal led to a federal government work ban imposed earlier this year, which was recently extended until February 2027. The firm has already cut hundreds of roles in 2026 as part of restructuring.
Key Perspectives
KPMG (John Sams): The firm faces “difficult market conditions” and acknowledges “challenges created by our own failings” as it works to rebuild trust. Sams said the company will “monitor performance closely, act when needed and consider carefully how the firm needs to be set up for the future.”
Department of Finance / Independent review: The ban on new federal government work will remain until KPMG proves it has implemented reforms to ensure whistleblower complaints are properly handled. The review recommended against a permanent ban, but insisted on demonstrated compliance.
What to Watch
- Whether KPMG can implement the recommended reforms before the ban expires in February 2027.
- Further job cuts across other divisions if market conditions remain subdued.
- Any new whistleblower allegations or regulatory actions that could prolong the government ban.
Checked
12 claims in this story checked against 1 source: 11 supported.
Show each claim
- SupportedKPMG is set to slash hundreds more jobs before Christmas.WA Today - Latest News: “KPMG set to slash hundreds more jobs before Christmas.”
- SupportedThe AFR reported that up to 400 KPMG staff could lose their jobs.WA Today - Latest News: “The embattled firm declined to comment on a report from the Australian Financial Review that up to 400 staff would lose their jobs”
- SupportedKPMG’s business is being hit by its whistleblower scandal and government work ban.WA Today - Latest News: “as the fallout from its whistleblower scandal, and government work ban, continues to hit its business.”
- SupportedSources said consulting boss Brad Miller told staff last week about the cuts.WA Today - Latest News: “sources confirm that KPMG’s consulting boss Brad Miller told staff of the cuts last week”
- SupportedMiller said affected employees would be out the door “within weeks”.WA Today - Latest News: “said these employees will be out the door “within weeks”.”
- SupportedIn August, John Sams flagged further redundancies.WA Today - Latest News: “In August, KPMG Australia’s new boss John Sams flagged that more job cuts would be needed”
- SupportedThe results Sams announced showed a 17 per cent revenue decline in consulting.WA Today - Latest News: “financial results for the previous year which showed a 17 per cent revenue decline for its consulting business.”
- SupportedSams said, “We need to be clear about the outlook. We expect difficult market conditions to continue in FY27 and beyond.”WA Today - Latest News: ““We need to be clear about the outlook. We expect difficult market conditions to continue in FY27 and beyond,” he said.”
- SupportedSams said economic growth was expected to remain subdued until at least 2028 and described challenges facing the firm and sector.WA Today - Latest News: “Economic growth is expected to remain subdued until at least 2028, affecting client investment and extending decision-making timeframes. The professional services sector is also changing rapidly”
- SupportedKPMG announced 27 partners and 360 employees would lose their jobs.WA Today - Latest News: “That month, the firm announced 27 partners and 360 employees will lose their jobs”
- Partly supportedThe impending loss of audit work was linked to the whistleblower affair.WA Today - Latest News: “the impending loss of audit work following the whistleblower scandal.”
- SupportedThe Department of Finance extended KPMG’s ban on bidding for new federal government work until February next year.WA Today - Latest News: “Last month, the Department of Finance has extended its ban on KPMG bidding for new federal government work until February next year”