KPMG Australia to cut about 400 staff after revenue dip
KPMG Australia is letting go of about 400 staff, including partners and employees in consulting, after a small drop in annual revenue.
The firm says the cutbacks are mostly because fewer government contracts came through, and warns that slow economic growth could stick around until at least 2028, making things tough for both clients and the company.
Whistleblower scandal prompts John Sams appointment
This round of layoffs comes on the heels of a whistleblower scandal earlier this year, where confidential client information was reportedly misused.
That sparked reviews into the firm's governance, culture, ethics, and integrity and led to several top leaders stepping down, including the former chief executive officer.
Now, the new chief executive officer, John Sams, says he is focused on rebuilding trust and tightening up how things are run at KPMG.
KPMG consulting down 17% bids paused
While consulting took a hit with a 17% revenue drop, KPMG's tax and legal, audit and assurance businesses actually saw solid growth.
To regroup, the company has paused bidding for federal contracts until September 30 and is restructuring to better connect with its global network.