Scandal, Falling Demand Trigger Major Job Cuts at KPMG Australia
What Happened
KPMG Australia announced job cuts affecting around 400 employees and partners, about 5% of its workforce, as it grapples with weaker demand for consulting services and the fallout from a scandal involving the alleged misuse of confidential client information. Most of the reductions will occur in the consulting and business-services divisions.
Key Takeaways
The layoffs highlight the challenges facing consulting firms as client spending slows and governance controversies damage reputations. KPMG Australia reported a decline in revenue and a sharp drop in consulting income, while continuing efforts to rebuild trust following the whistleblower-linked scandal.