Scandal-plagued KPMG Australia is cutting almost 400 jobs as it grapples with the fallout from allegations it misused confidential client information to win business and as demand for consulting services slows.
The consultancy giant will reduce its workforce by about 5 per cent, cutting 360 employees and 27 partners across its consulting and business services, according to a statement on Aug 24. Overall revenue fell 1 per cent in the year through June, while consulting revenue slumped 17 per cent.
“KPMG has reviewed its costs and future workforce needs in response to continued economic weakness, difficult market conditions and the impact of the firm’s conduct and whistleblower matters,” KPMG Australia said in the statement.
“The firm is also simplifying parts of its structure to create more connected teams and align more closely with KPMG’s global advisory services.”
KPMG’s whistleblower scandal has shone a spotlight on the audit and consulting industry in Australia and extends a string of misbehaviour from large professional services firms in the country.
The government has since proposed sweeping changes to the sector including new powers to police the industry and impose larger fines. BLOOMBERG
