KPMG reportedly cutting hundreds of jobs

KPMG is rumoured to be undertaking large-scale redundancy proceedings, in the wake of the ongoing audit scandal and subsequent parliamentary scrutiny.

As reported by The Australian Financial Review in late July, big four firm KPMG Australia intended to lay off dozens of partners and approximately 1,000 staff in September.

Now, according to The Australian, KPMG chief executive John Sams emailed firm partners around 19 August to inform them: “Some of you will have seen media attention this afternoon about Partner exits and staff job losses.”

“I want to address this head-on … conversations have commenced this week with impacted Partners.”

The so-called conversations will reportedly run from 19 to 21 August.

Sams replaced interim CEO Stan Stavros in July of this year.

Several senior executives and partners have departed KPMG Australia since the scandal began, including former CEO Andrew Yates, former chairman Martin Sheppard, former national managing partner of audit and assurance Julian McPherson, and audit partners Kim Lawry and Paul Rogers. Lawry departed from the big four accounting firm after Westpac demanded that she be removed from its file.

Former chief operating officer Eileen Hoggett was expelled from the partnership following the discovery of new evidence by Allens.

On top of this, KPMG general counsel Louise Capon and HR head Dorothy Hisgrove also stepped down from their respective roles.

In what may be a case of history repeating itself, PwC reportedly conducted mass job cuts at the end of 2023 following a similar scandal involving the misuse of confidential material.

According to the firm, the decision to cut approximately 300 jobs, and reassign another 200, was “a result of our changed client base and our business environment”.

Most of the impacted roles were in consulting or trust and risk.

KPMG declined to comment.

More to come.

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