KPMG faces job cuts and major contract loss in Australia

KPMG is facing significant financial and operational challenges in Australia following a whistleblower scandal involving the misuse of confidential client data. The firm has announced a 5 percent workforce reduction, which will eliminate approximately 360 employees and 27 partner roles, primarily within its consulting and business services divisions.

In a major blow to the firm, Macquarie Group has announced it will not recommend KPMG as its incoming auditor, opting instead for PwC. This loss is estimated to be worth $700 million over the next decade. Macquarie cited concerns regarding KPMG’s capacity to deliver the audit following the departure of key team members, as well as issues regarding the firm's culture and transparency.

KPMG’s annual revenue for fiscal 2026 dipped 1 percent to $2.26 billion. While its audit, tax, and legal arms saw growth, the consulting business experienced a 16.9 percent revenue decrease. Additionally, the firm is currently banned from bidding on Australian federal government contracts until at least the end of September.