KPMG Australia May Cut Another 400 Jobs Amid Contract Ban

KPMG Australia is reportedly considering cutting up to 400 additional jobs by the end of November 2026, taking the total number of positions affected this year to around 800. The accounting firm has not confirmed the proposed reductions, and no final decision has been made.

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Consulting and Business Services May Face Cuts

According to a report by the Australian Financial Review (AFR), the proposed workforce reduction is being internally referred to as the ‘reset’. Two sources familiar with the matter told AFR that the impact could be greatest in the Consulting and internal-facing Business Services divisions.

The reported job cuts come after KPMG Australia announced a workforce reduction of approximately 5% in August 2026, affecting 27 partners and around 360 employees.

The latest reported reductions could take the total number of jobs affected to approximately 800, representing around 9% of its 9,000-strong workforce.

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However, Accounting Times reported on November 3 that it understands no decision has been made on further workforce reductions.

Consulting Revenue Falls 16.9%

KPMG Australia’s financial results for FY26 show that the firm recorded total revenue of A$2.257 billion, down 1% from the previous financial year.

Its Consulting division reported a 16.9% year-on-year decline in revenue, while four of its five business divisions recorded growth.

The August workforce reduction was attributed to weaker market conditions, lower government spending on consultants and the impact of the firm’s conduct and whistleblower-related matters.

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The firm has also faced scrutiny over allegations involving the misuse of confidential client information and its handling of a whistleblower complaint.

Government Contract Restrictions Extended

The Australian Department of Finance released an independent review of KPMG in late October, identifying shortcomings in its governance, internal reporting channels and handling of whistleblower concerns.

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On November 2, the Department of Finance announced that KPMG had agreed to temporarily stop accepting new contracts with Australian Government entities covered by Commonwealth procurement rules until February 28, 2027.

The latest developments have added pressure on the firm’s Australian operations.

For employees, the key concerns are the possibility of further redundancies, uncertainty over affected business divisions and the impact of reduced government work on future employment.

HR and Business Takeaway:

KPMG Australia’s situation reflects how declining business demand, loss of major contracts and governance-related issues can lead to further workforce restructuring, even after an organisation has already announced significant job cuts.