KPMG Australia cuts nearly 400 jobs as revenue declines

KPMG Australia announced plans to cut nearly 400 positions as the scandal-affected firm grapples with a contracting market and reduced government work. The redundancies come after the firm reported total revenue fell 1% to US$1.62 billion for the year ending June 2026, signalling ongoing challenges in its core business segments.

The professional services firm's consulting division bore the brunt of the downturn, experiencing a sharp 17% revenue decline as it lost significant government contracts. The slump reflects intensifying competition in the Australian professional services sector and a pullback in public sector spending on consulting services.

The job cuts underscore mounting pressure facing KPMG as it attempts to stabilise operations following reputational damage from earlier controversies. The firm's leadership warned that market conditions remain difficult, suggesting the headcount reduction may represent only the first phase of restructuring as it adapts to changed circumstances.

The redundancies will affect multiple divisions across KPMG's Australian operations. The firm has not detailed the specific timeline for implementing the cuts or provided clarity on which service lines will be most affected by the restructuring programme.