KPMG Australia is set to cut up to 400 additional jobs by the end of November, as the accounting and consulting firm continues to grapple with the consequences of a high-profile document misuse scandal and a government-imposed ban on bidding for new federal contracts. These latest redundancies bring the total workforce reduction to approximately 9 percent, or around 800 positions, out of the firm’s 9,000 employees.

The planned job cuts, internally termed “the reset,” will predominantly affect the consulting division, led by Brad Miller, and the internal business services teams. Since July, the consulting arm has experienced a revenue decline of at least one-third, reflecting the wider impact of the firm’s reputational damage. The firm’s public sector business is also under pressure as the federal government recently extended its ban on KPMG from competing for new government contracts until the end of February 2027. Officials have insisted that KPMG must prove it is trustworthy through substantive changes rather than relying solely on promises of cultural reform.

KPMG’s defence segment, which historically generated over $300 million annually, has suffered a sharp downturn. Revenue dropped to around $150 million last year and has fallen below $60 million in the first four months of the current financial year, due largely to the exhaustion of long-term contracts. The firm is now looking to sublease two of three floors in its Canberra office amid staff departures and growing uncertainty. Many employees are reportedly exploring alternative job opportunities, pending clarity on redundancy entitlements.

Internal sources, speaking on condition of anonymity due to the sensitivity of the matter, have confirmed the extent of the planned cuts and outlined the ongoing decline in performance. In a related development, KPMG International is expected to provide financial support to its Australian operation by December. Earlier reports suggested the partnership would seek up to AUD 100 million in emergency funding and request reductions or waivers of its annual global subscription fee, which exceeds AUD 100 million. However, rank-and-file partners have been told that these initial figures are inaccurate, though no updated details have been disclosed.

The current job reductions follow a previous round in August, when about 400 staff were laid off under “Project Vector,” a figure slightly smaller than the originally intended 450 cuts. In addition to staff layoffs, the firm has implemented pay reductions for partners and asked several partners to depart.

KPMG’s challenges pale in comparison with those faced by PwC Australia, which lost roughly one-third of its revenue, along with partners and staff, after a senior tax partner was found to have leaked confidential Treasury information.

The controversy engulfing KPMG began in March 2026 with allegations that senior audit partners misused confidential client and government documents while exploiting conflicted relationships to secure contracts. The firm’s handling of the allegations—especially its treatment of the whistleblower—exacerbated the crisis, leading to the departure of several executives, along with a broader loss of clients and employees.

In response, KPMG launched a second phase of reforms last month following scathing reviews, including an independent examination by former senior public servant Ian Watt. His report criticized KPMG’s response to the scandal as “misguided, fragmented, prolonged and, at critical points, lacked clear ownership.” Based on these findings, the federal government extended the ban on KPMG’s access to new government work through February 2027.