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FinanceKPMG Australia considers hundreds of job cuts, up to 20% partner pay reduction amid audit leaks scandal
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KPMG Australia is evaluating measures that could lead to several hundred redundancies and a reduction in partner pay of up to 20% as it deals with the financial fallout from an audit leaks scandal. The firm is accused of using confidential client data to win contracts. Several senior leaders, including the chair, CEO, and audit head, have left. KPMG's public-sector arm has agreed not to bid for new Commonwealth and New South Wales public sector work until the end of September. The company also faces softer demand from private-sector clients. A new independent chair, Michael Ebeid, has been appointed as part of governance reforms. The incoming CEO, yet to be named, is expected to appear before a parliamentary committee examining the scandal, with a hearing scheduled for 14 August. Potential CEO candidates include Ben Travers, Naomi Mitchell, and John Sams.
Source report
Author: Aninda Chakraborty Source: International Accounting Bulletin
Overview
KPMG Australia is evaluating measures that could result in several hundred redundancies and a reduction in partner pay of up to 20%, as the firm responds to the financial fallout from the audit leaks scandal.
According to a report by the Australian Financial Review (AFR), the job reductions are expected to be spread across the 'Big Four' firm.
Key Details
- Number of impacted roles: The final figure has not been confirmed, but internal expectations point to at least several hundred positions. Two sources told the AFR that the total could reach or exceed 1,000.
- Current workforce: KPMG reports on its website that it employs approximately 10,000 people in Australia, including more than 600 partners.
Background
The report follows KPMG's public-sector arm agreeing not to bid for new Commonwealth and New South Wales public sector work until the end of September. The firm is also reportedly experiencing softer demand from private-sector clients.
KPMG Australia is facing allegations that it used confidential client data to win contracts. Several senior leaders have departed since the issue emerged, including the chair, CEO, and audit head.
More recently, KPMG Australia appointed Michael Ebeid as its first independent chair as part of governance reforms aimed at rebuilding trust.
Leadership and Pay
The AFR reported that any announcement on job cuts is unlikely before the company appoints a permanent CEO.
Potential candidates for the role named in the report include:
- Ben Travers – Head of tax and legal
- Naomi Mitchell – Head of mid-market and private businesses
- John Sams – Chief financial officer (also cited as a leading contender)
Sams told partners last month that pay for the 2026–27 financial year (FY26–27) could fall by as much as 13%. The AFR report also indicated that some partners had been told broader partnership pay for FY26 could be reduced by 20%.
Next Steps
The incoming CEO is expected to appear before the parliamentary committee examining the audit leaks scandal. A further hearing is scheduled for 14 August.
This article was originally created and published by International Accounting Bulletin, a GlobalData owned brand.
Source
Yahoo FinanceWestern
Part of this Story
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