\n The big four firm has not yet confirmed the veracity of reports of up to 400 layoffs later this month. \n <\/p>\n
Yesterday (Monday 2 November), The Australian Financial Review (AFR) reported that KPMG\u2019s ongoing ban<\/a> on bidding for federal government contracts has pushed the embattled big four firm to cut up to 400 more roles.<\/p>\n AFR reported that two sources, close to the firm and unauthorised to speak about internal matters, said that the cuts are called the \u201creset\u201d, having the broadest impacts in the consulting and the internal-facing business services divisions.<\/p>\n \u201cKPMG Australia is preparing to axe up to 400 staff by the end of November as fallout continues from its document misuse scandal and an extended ban on bidding for new federal contracts, lifting total redundancies to 9 per cent of the firm\u2019s workforce,\u201d AFR said, noting that such a move would lift the total number of redundancies to 800.<\/p>\n Accounting Times understands that no decision has been made by the firm yet about future potential reductions in headcount. <\/p>\n Such reported potential redundancies follow the firm\u2019s consulting division suffering a 16.9 per cent year-on-year drop in revenue<\/a>.<\/p>\n \u201cThe firm is now seeking to sublease two or three floors of office space in its Canberra office, while many staff within the team and beyond are quietly sounding out alternative employment but waiting to see if they get a redundancy payment on the way out,\u201d AFR said.<\/p>\n Further, late last month<\/a>, the Department of Finance released its Independent Review of KPMG Australia, which determined that KPMG failed to respond appropriately to the whistleblower\u2019s concerns and that the firm\u2019s policies, reporting channels and oversight structures did not operate effectively in practice to provide the necessary support, risk identification, or ensure timely decision-making.<\/p>\n The big four firm has also had breakdowns in audit tenders with numerous clients, including Australia and New Zealand Banking Group (ANZ) in early October, Insurance Australia Group (IAG) in late September, and Macquarie Bank in late August.<\/p>\n ANZ determined<\/a> that KPMG Australia would cease to provide its external audit services after a 57-year relationship, and said that the firm would also not be eligible to bid in the tender process, given the firm\u2019s long tenure.<\/p>\n IAG also ended its 26-year partnership<\/a> with KPMG Australia, to cease engagement for its audit services on the grounds of a long tenure.<\/p>\n While these two companies severed this relationship with the firm on the basis of a long tenure, after consideration, Macquarie Bank determined that the firm did not meet its audit criteria<\/a>, with it opting to award PwC the tender instead.<\/p>\n \u201cThe Boards currently hold concerns in respect of KPMG Australia and its audit practice in two of the key criteria considered in the audit tender completed in late 2025, namely capacity to deliver the audit given several key members of the proposed KPMG Australia audit team have departed; and culture, including a culture that transparently discloses issues,\u201d the bank\u2019s board said in a statement in late August.<\/p>\n