KPMG Australia Weighs Major Workforce Cuts and Partner Pay Reduction Amid Ongoing Scrutiny

KPMG Australia is considering significant cost-cutting measures that may include reducing its workforce by hundreds of employees and lowering partner compensation by up to 20%, according to a report by the Australian Financial Review.

The firm has been dealing with the consequences of allegations that confidential client information was used to secure high-value contracts. The controversy has already resulted in several senior leadership departures, including the chairman, chief executive officer and audit head.

KPMG has acknowledged shortcomings in how it handled the whistleblower complaint and has begun a fourth internal investigation after earlier reviews did not confirm any misconduct.

According to the report, the planned workforce reduction has not been finalized, but the number of affected employees could exceed 1,000, citing people familiar with the matter.

A company spokesperson told the publication that KPMG is reviewing several options to strengthen its position for future challenges. Those options include evaluating its operating model, overall costs and workforce requirements. The spokesperson added that no final decisions have been made.

Reuters was unable to obtain comment from a KPMG representative outside normal business hours.

KPMG's website states that the firm employs around 10,000 people in Australia, including more than 600 partners.

Australia's corporate regulator opened a formal investigation into KPMG Australia in May. Last week, it also expanded its review to include audit conduct complaints involving the country's Big Four accounting firms.

The audit leak controversy became public in March after Senator Deborah O'Neill raised concerns in parliament based on allegations made by a former senior executive who had submitted a whistleblower complaint to the company in 2024.