KPMG set to slash hundreds more jobs before Christmas
KPMG Australia is preparing to axe hundreds more staff within weeks as the fallout from its whistleblower scandal, and government work ban, continues to hit its business.
The embattled firm declined to comment on a report from The Australian Financial Review that up to 400 staff would lose their jobs, but sources confirm that KPMG’s consulting boss Brad Miller told staff of the cuts last week and said these employees would be out the door “within weeks”.
More KPMG employees will pay the price as the whistleblower scandal hits its business.Thomas WieleckiDeparting staff could be paid the statutory minimum as they are forced out the door with as little as 12 weeks pay for 10 years of service. The redundancy payout can vary according to contract agreements and notice periods.
This contrasts with the payouts received by former chief executive Andrew Yates, and former chairman Martin Sheppard who were forced to resign over their handling of the whistleblower scandal.
A recent report from KPMG showed Yates’ payout was far more than what had been revealed in a Senate inquiry this year. Yates, who resigned in May, was paid a total of $6.7 million including $4.38 million in retirement payments, in lieu of notice and leave.
Sheppard received $1.82 million, including more than $131,000 in “performance-based” payments.
The firm’s former chief operating officer Eileen Hoggett is suing KPMG after being stripped of any benefits – including accrued annual leave – and sacked in July after investigations found evidence she had accessed sensitive Lendlease board documents and kept them in a work locker.
The consulting firm was thrown into turmoil by damaging allegations aired by a whistleblower that confidential client data was accessed and used to win new clients.
In August, KPMG Australia’s new boss John Sams flagged more job cuts would be needed as he unveiled financial results for the previous year which showed a 17 per cent revenue decline for its consulting business.
“We need to be clear about the outlook. We expect difficult market conditions to continue in FY27 and beyond,” he 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.
“While these conditions are likely to persist, we remain focused on what we can control. We will continue to monitor performance closely, act when needed and consider carefully how the firm needs to be set up for the future.”
At the time, the firm announced 27 partners and 360 employees would lose their jobs in response to a significant decline in its consulting business and the impending loss of audit work following the whistleblower scandal.
Last month, the Department of Finance extended its ban on KPMG bidding for new federal government work until February next year, after an independent review concluded the firm should not be permanently banned from government contracts.
The report recommended the ban be in place until KPMG was proven to have implemented reforms to ensure whistleblower complaints were appropriately handled in future.
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