KPMG eyes second round of job cuts as federal work ban stretches morale thin
KPMG considers second redundancies after staff left following a ban on new federal work extended to February 2027.
KPMG was banned from winning new federal contracts in June 2026 after revelations of executive misconduct. The ban was extended by four months to the end of February 2027.
Now the firm is assessing whether to cut more jobs. Former employees said morale in the office had suffered.
One said staff felt punished for misconduct that started in the Sydney office. "It seems like every day on LinkedIn somebody's announcing they're leaving and going to another firm," the employee said.
Mid-tier and boutique consultancies have recruited experienced KPMG staff. Recruitment firms confirm the exodus.
HorizonOne Recruitment director Andy Batstone said large numbers of KPMG staff have reached out to explore new roles. CBR Recruitment's managing director said more employees than usual from KPMG were seeking work.
KPMG has not yet set a redundancy target or made a final decision on cuts.
- June 2026
- Ban imposed
- February 2027
- Ban extended to
- Canberra, Sydney
- Office affected
Why it mattersThe federal ban has crippled KPMG's revenue stream, forcing the firm to consider layoffs and creating uncertainty for employees who did nothing wrong but face job losses.
AustraliaKPMG staff in Australian cities including Canberra face redundancy, and the scandal has damaged the consultancy sector's reputation, putting government contracts at risk across major firms.
✓ Claims checked against the source and corrected before publish. checked 1 h ago
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