KPMG Australia to cut 5% of workforce amid consulting downturn

KPMG Australia will reduce its workforce by approximately 5 per cent, the consultancy confirmed as it grapples with challenging market conditions affecting the professional services industry. The move will result in the departure of several hundred employees from the firm's Australian operations, marking a significant restructuring as demand for consulting services has softened in recent months.

The decision reflects pressures facing major global consulting firms, which expanded aggressively during the pandemic but now face reduced client spending as economic uncertainty persists across the Asia-Pacific region. KPMG Australia joins peers in recalibrating headcount to align with current market conditions and client needs.

The firm cited evolving business demands and the need to ensure sustainable operations as drivers behind the restructuring. The layoffs are expected to be completed over coming months as the firm works through the transition process with affected staff.

The cuts underscore mounting challenges in the professional services sector, where firms have increasingly relied on cost reductions to maintain profitability amid softer revenue growth. The downturn has prompted similar workforce adjustments across major consulting and accounting firms operating in Australia and the broader Asia-Pacific region.