KPMG Australia prepares to cut hundreds of jobs
Share
- KPMG Australia is preparing to cut hundreds of staff roles and reduce partner pay by up to 20%.
- The potential job losses follow an audit leaks scandal that has reduced the firm's pipeline of public and private sector work.
- Management is evaluating cost-cutting measures to ensure the business remains positioned for future market challenges.
KPMG's (ASX:KPMG) Australia division is preparing to cut between 200 and 1,000 staff roles and reduce partner distributions by up to 20% following a severe decline in its public and private sector consulting pipeline.
The professional services firm, which employs approximately 9,000 staff and 700 partners, previously cut 200 executive assistant roles in February to offshore work to the Philippines for an annual saving of $17 million.
"Our focus remains on providing high-quality service to our clients, supporting our people, and making responsible decisions that position the firm for a sustainable future," said KPMG Spokesman Unnamed.
The planned redundancies will be finalised after the firm appoints a permanent CEO, with CFO John Sams currently positioned as the frontrunner for the role.
The firm's public-sector division has already agreed to pause all bidding for new Commonwealth and New South Wales public sector contracts until the end of September.
The broader partnership faces estimated average distribution losses of $717,000.