KPMG Australia slashes 387 jobs following scandal
- KPMG Australia will cut 387 roles and reduce average partner pay by 13%.
- Annual revenue fell 1% to $2.1 billion as consulting sales dropped 17%.
- The cost-cutting measures follow a document-misuse scandal and lower overall consulting demand.
KPMG Australia will slash 5% of its workforce and cut average partner pay by 13% to $645,000 following falling consulting demand linked to a data misuse scandal.
The job cuts, which include 27 partners and 360 staff, come as annual revenue for the year to June 30 fell 1% to $2.1 billion.
"After careful consideration, we have made the difficult decision to reduce our workforce and restructure parts of the firm," said KPMG Australia CEO John Sams.
The reductions will primarily affect the consulting unit, where revenue dropped 17% to $632 million, while broader internal restructuring could eventually impact up to 1,000 employees.
The firm stated that its strategy is now focused on client retention after agreeing to temporarily suspend bidding for federal and state government contracts.
The firm has faced significant disruption since March after whistleblower allegations exposed audit partners misusing confidential client data.
The consulting downturn was partially offset by an 11% revenue increase in the firm's audit division to $405 million, along with an 11% gain in its tax and legal unit to $268 million.
