KPMG Australia announced on Monday that it will reduce its workforce by about 5%, eliminating 27 partners and roughly 360 employees, and said it expects a difficult market environment to continue at least until 2028.

The firm has been under investigation since March after whistleblower allegations surfaced that staff used confidential client information to secure audit contracts. The Australian government has indicated it may consider breaking up the Big Four accounting firms, and KPMG is cooperating with reviews of its governance, culture and ethics.

The headcount reductions will occur mainly in the consulting and business services divisions. The firm reported a 1% decline in total revenue to A$2.26 billion for the year ended June 2026, driven by a 17% drop in consulting revenue and loss of government contracts. Revenue grew in the deal advisory, infrastructure, tax, legal, audit and assurance, and mid‑market and private divisions. Average pay for equity partners fell 13% during the year as the firm reviewed its cost structure. KPMG has agreed not to bid for new federal government work until September 30 while independent reviews are conducted. Former chief executive, audit leader and chairman, along with several senior audit partners, have left the firm.

The firm said it will focus on rebuilding client trust and aligning its structure with global advisory services, while the government continues to examine possible regulatory changes for the partnership model of the Big Four.