KPMG doesn’t deny job cuts, but insists no decision on how many will go
The under-pressure audit and consulting firm insists it has not yet settled on cuts, despite talk its workforce will be reduced by up to 10 per cent.
KPMG has denied it has settled on cuts that will reduce its workforce by as much as 10 per cent.
While job reductions look almost certain, the under-pressure audit and consulting firm insisted on Thursday it was still looking at “a range of options” as it deals with a combination of the fallout from its audit leaks scandal and softer trading conditions.
The comments came as KPMG’s international leadership met with the Australian partnership’s new management and its partners on the east coast to discuss the crisis.
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By continuing you agree to our Terms and Privacy Policy.KPMG has been scorched by regulatory and parliamentary pressure over its failure to properly investigate now substantiated claims by a whistleblower that it misused confidential information from an audit client, Lendlease, to pursue other audit jobs and then harassed the whistleblower out of the firm for raising the allegations.
The scandal, which escalated after the allegations were raised in Parliament in March, has also cost the jobs of former KPMG chair Martin Sheppard, chief operating officer Eileen Hoggett and several partners.
Media reports say the group, now being led by new chief executive John Sams, is now planning to cut its workforce by 1000, or some 10 per cent.
However, KPMG said it had still to make any decisions on staffing.
“KPMG is continuing to evaluate a range of options to ensure the firm remains well positioned for the challenges ahead,” a spokesperson said.
“As part of our planning for the 2027 financial year, we are reviewing our operating model, cost base and workforce needs.
“It is important to note that no decisions have been made regarding any specific measures or potential impact on roles. We recognise these discussions can create uncertainty, and as decisions are made, we will communicate with our people first and in a respectful way.”
The spokesperson said KPMG’s global chair Bill Thomas and chief operating office Gary Wingrove were visiting Australia this week “to support the new local leadership team”.
“This strategic visit underscores the support provided by KPMG International as the Australian firm resets its approach to governance and culture and embeds new leadership.”
Appointed last week, Mr Sams has promised to do “whatever” was needed to make KPMG “better”.
He has pledged to quickly implement an “action plan” announced by KPMG last month that included the appointment of the firm’s first independent chair, an overhaul of its governance and a review of its whistleblower program.
The firm’s failings are now the subject of several outside inquiries by the Australian Securities and Investments Commission, the Department of Finance and Chartered Accountants Australia & New Zealand.
