SYDNEY, August 25, 2026, 00:55 AEST
- KPMG Australia plans to lay off 27 partners along with approximately 360 staff members.
- Consulting revenue dropped 16.9%, while the firm’s overall decline was 1%.
- Accenture, a listed consulting peer, gained 0.82% in trading on Monday.
KPMG Australia plans to lay off approximately 5% of its staff following a 16.9% decrease in consulting income. The job cuts will impact 27 partners as well as around 360 staff members. The majority of roles eliminated are in consulting and business services.
The Google trend “kpmg australia job cuts” highlights two main factors. Demand fell when governments cut back on consultant spending. Following this, a client-data scandal transformed a general sector slowdown into a trust issue uniquely affecting the firm.
The key indicator for investors is the disparity between consulting and overall firm performance. Total revenue declined by just 1% to A$2.257 billion. Consulting revenue brought in A$632 million, marking a decrease of almost 17%.
| KPMG Australia FY2026 measure | Result | Change |
|---|---|---|
| Total revenue | A$2.257 billion | down 1.0% |
| Consulting revenue | A$632 million | fell 16.9% |
| Workforce reduction | 27 partners and about 360 employees | roughly 5% |
| Average equity-partner pay | Not disclosed | dropped 13% |
Consulting made up roughly 28% of KPMG Australia’s revenue, but took the brunt of the disclosed reductions. Increased demand in audit, tax, and mid-market services balanced out a significant portion of the A$117 million yearly deficit in consulting.
| KPMG division | FY2026 revenue growth | Direction |
|---|---|---|
| Audit and assurance | +11.0% | Growth |
| Tax and legal | +10.9% | Growth |
| Mid-market and private | +6.4% | Growth |
| Deal advisory and infrastructure | +3.0% | Growth |
| Consulting | -16.9% | Decline |
Chief Executive John Sams anticipates ongoing challenges. “We expect difficult market conditions to continue in FY27 and beyond,” he said. The company also pointed to reduced client spending and AI-driven shifts in service delivery. ABC News
Governance risk is complicating interpretation of the downturn. Allegations involve confidential material from Lendlease Group ASX:LLC, reportedly used during bidding processes that included Westpac Banking Corporation ASX:WBC and Dexus ASX:DXS.
KPMG has suspended submitting new bids for federal-government work until September 30. Several senior executives have also left the firm. These outcomes indicate that contract losses, rather than just soft demand, prompted the restructuring.
Public-market peers showed mixed performance on Monday. Accenture plc NYSE:ACN was up 0.82% at $186.81 as of 10:45 EDT. International Business Machines Corporation NYSE:IBM declined 1.53%.
| Listed services peer | Price | Session move | Verified time |
|---|---|---|---|
| Accenture NYSE:ACN | $186.81 | up 0.82% | 10:45 EDT |
| IBM NYSE:IBM | $232.08 | down 1.53% | 10:35 EDT |
| Cognizant NASDAQ:CTSH | $61.90 | up 0.05% | 10:30 EDT |
| EPAM Systems (NYSE:EPAM) | $111.86 | up 1.37% | 10:47 EDT |
Accenture stands out with the most notable public comparison. Its most recent quarterly revenue climbed 3% in local currency terms. Consulting revenue edged up by 1%, and managed services expanded 5%.
| Demand comparison | KPMG Australia | Accenture |
|---|---|---|
| Reporting period | FY2026 | Q3 FY2026 |
| Total revenue growth | -1.0% | +3% local currency |
| Consulting growth | -16.9% | +1% local currency |
| Operating margin | Not disclosed | 17.0% |
| Workforce action | Roughly 5% reduction | No comparable quarter figure released |
Accenture Chair Julie Sweet stated that demand for “large-scale reinvention remains strong.” However, bookings declined by 2% to $19.3 billion. The breakdown indicates that AI projects are expanding, while traditional discretionary work continues to proceed with caution. Accenture results
Wall Street is split. Accenture carries an average target price of $179.11, 4.1% under Monday’s closing level. In August, analysts issued 14 positive ratings and 13 holds.
| Analyst | Firm | Recommendation | Target | Date |
|---|---|---|---|---|
| Jason Kupferberg | Wells Fargo NYSE:WFC | Buy | $194 | Aug. 12 |
| James Schneider | Goldman Sachs NYSE:GS | Buy | $230 | Aug. 4 |
| James Friedman | Susquehanna International Group | Hold | $140 | July 15 |
| Sachin Mittal | DBS Group SGX:D05 | Hold | $133 | July 15 |
| Nate Svensson | Deutsche Bank ETR:DBK | Hold | $136 | July 10 |
The valuation signals prudence. Accenture was priced at 12.9 times projected earnings, with a dividend yield of 3.49%. Over the past 52 weeks, its share price ranged between $118.15 and $291.09.
Risks: As KPMG operates as a private partnership, available disclosures are restricted. Sector read-across from peers may be exaggerated, since KPMG encounters unique regulatory and client-retention challenges.
For investors, the 17% drop in consulting holds greater weight than the headline staff reduction. It points to soft discretionary demand. The steeper decline compared to listed rivals indicates governance issues intensified that strain.
