KPMG's embattled Australia consultancy business is preparing to cut hundreds of jobs and reduce partner pay by as much as a fifth, the Australian Financial Review reported on Tuesday, as it contends with the fallout from an audit leak scandal.
KPMG Australia has faced whistleblower allegations that it used confidential client data to win lucrative contracts. There have been a number of high-level departures since the scandal, including the chairman, CEO and audit boss.
KPMG has admitted it has mishandled the whistleblower complaint and has launched a fourth internal investigation after previous ones failed to substantiate any wrongdoing.
Job cuts have yet to be finalized, but they could exceed 1,000, AFR said, citing people familiar with the matter.
A KPMG spokesman told the Australian daily that KPMG was evaluating “a range of options to ensure the firm remains well positioned for the challenges ahead.”
The options included a review of the operating model, cost base and workforce needs, the spokesman said, adding that no decisions on specific measures have been made yet.
KPMG has about 10,000 employees in Australia, including more than 600 partners, its website says.
Australia's corporate regulator launched a formal investigation into KPMG Australia in May and last week widened its scrutiny of the sector to audit conduct complaints at Big Four audit firms.
