KPMG Australia Axes 360 Employees and 27 Partners in Sweeping Restructure

KPMG Australia will cut 27 partners and about 360 employees, roughly 5% of its workforce, as revenue slips and the firm absorbs the fallout from allegations that it misused confidential client information.

Chief Executive John Sams said most of the affected roles are in the consulting arm, where client demand has weakened. The firm will also merge several teams and align them more closely with KPMG's global advisory business.

Revenue Slides as Consulting Demand Weakens

According to the firm, total revenue for the year ended June 30 reached A$2.257 billion, down 1% on the prior period. Consulting revenue fell 16.9%. The firm attributed this to soft market conditions and reduced government use of consultants.

Four of the five divisions still grew. Audit and assurance rose 11%, tax and legal climbed 10.9%, mid-market and private gained 6.4%, and deal advisory and infrastructure added 3%.

Consulting nonetheless remains the largest division by revenue at A$632 million. The Big Four firm cited economic weakness, challenging market conditions, and the fallout from its own conduct and whistleblower cases among the factors behind the layoffs.

… Continue reading the full article at the original source below.