SYDNEY, July 30 (Reuters) – KPMG Australia said on Thursday it had made no decision on possible job cuts after the Australian Financial Review (AFR) reported that the firm plans to eliminate about 1,000 positions or 10% of its workforce following an audit misconduct scandal.
Details on the roles to be eliminated were shared with selected partners this week, with leadership urging them to support the new local management team or leave the firm, AFR reported without citing a source.
“We are reviewing our operating model, cost base and workforce needs. It is important to note that no decisions have been made regarding any specific measures or potential impact on roles,” a KPMG spokesperson said.
The spokesperson added the firm was continuing to evaluate “a range of options to ensure the firm remains well positioned for the challenges ahead.”
KPMG global Chairman and CEO Bill Thomas and Chief Operating Officer Gary Wingrove are in Australia this week to meet partners and clients, the spokesperson said.
The firm has faced intense scrutiny from the Australian government and blue-chip clients since whistleblower accusations emerged in March that it used confidential client data to win lucrative contracts.
The scandal involves the sharing of Lendlease and Optus data among staff bidding for audit work with major Australian bank Westpac, property firm Dexus and Australia’s biggest telecoms company Telstra.
There have been multiple high-level departures since then, including the chairman, CEO and audit boss. The embattled accounting firm last week promoted John Sams, a partner from the commercial advisory and transactions practice group, as CEO.
KPMG faces separate probes from the government, the Australian Securities and Investments Commission, the Tax Practitioners Board, and professional body Chartered Accountants ANZ. The firm is barred from bidding for new federal government work until September.
(Reporting by Renju Jose in Sydney; Editing by Edwina Gibbs)
