KPMG Australia to cut jobs and partner pay, AFR reports

Investing.com -- KPMG Australia is planning to cut hundreds of jobs and reduce partner compensation by up to 20%, the Australian Financial Review reported Tuesday, as the firm deals with consequences from an audit leak scandal.

The consultancy has faced whistleblower claims that it used confidential client data to secure profitable contracts. The scandal has led to several senior departures, including the chairman, chief executive officer and head of audit.

KPMG has acknowledged mishandling the whistleblower complaint and initiated a fourth internal investigation after earlier reviews did not confirm wrongdoing.

Job cuts have not been finalized but could surpass 1,000 positions, the Australian Financial Review said, citing sources with knowledge of the matter.

A KPMG spokesperson told the newspaper that the firm was evaluating "a range of options to ensure the firm remains well positioned for the challenges ahead."

The options include a review of the operating model, cost structure and workforce requirements, the spokesperson said. No decisions on specific measures have been made.

KPMG employs approximately 10,000 people in Australia, including more than 600 partners, according to its website.

Australia's corporate regulator launched a formal investigation into KPMG Australia in May and last week expanded its examination of the sector to include audit conduct complaints at Big Four audit firms.

The scandal became public in March when Deborah O'Neill, a senator from Australia's ruling Labor Party, used parliamentary privilege to raise issues that a whistleblower, a former senior executive, brought to the company in 2024.

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