KPMG reviews operating model amid audit misconduct scandal

KPMG’s global leadership team has arrived in Australia to support the firm’s local leadership transition as the professional services giant works to reset its governance framework, culture, and strategic direction.

The visit by global chairman and CEO Bill Thomas and COO Gary Wingrove comes as KPMG Australia begins a broader review of its operating model, cost base and workforce requirements as part of its FY27 planning process.

The firm said no decisions had been made regarding potential workforce impacts, but acknowledged that the review may create uncertainty among employees.

This comes despite reports from The Australian Financial Review that up to 1,000 employees will lose their jobs, along with a warning to unhappy members of KPMG Australia to “support the new local leadership team, or leave”.

The next public hearing for the parliamentary inquiry into KPMG, with a prominent focus on the whistleblower scandal, is scheduled for Friday, 14 August 2026, by the Parliament of Australia Joint Committees.

Most recently, there have been reports that the KPMG whistleblower alleged a toxic audit division culture involving bullying, fear of retaliation, and prioritising revenue growth over ethics, amid wider scrutiny of the firm’s handling of misconduct complaints.

In a statement provided to Accounting Times, A KPMG spokesperson said Thomas and Wingrove were in Australia this week to “support the new local leadership team, including KPMG Australia CEO John Sams".

“Gary and Bill will be meeting partners and clients during an important time for the firm,” they said.

“This strategic visit underscores the support provided by KPMG International as the Australian firm resets its approach to governance and culture and embeds new leadership.”

As part of the firm's changes for FY27, KPMG Australia appointed John Sams as its new CEO, having been a partner at KPMG for over a decade, and with over 20 years of experience across tax, corporate finance and infrastructure advisory.

The professional services giant has undergone significant leadership upheaval since May, notably with the departures of CEO Andrew Yates and chairman Martin Sheppard.

Most recently, the firm terminated former COO Eileen Hoggett on Friday following revelations that she misrepresented her actions regarding sensitive client records from Lendlease, which were discovered within her workplace storage.

While the firm maintains that no final workforce decisions have been made, this ongoing assessment of operational requirements has inevitably fueled concerns regarding job security and internal morale.

“KMPG is continuing to evaluate a range of options to ensure the firm remains well positioned for the challenges ahead,” the spokesperson said.

“As part of our planning for FY27, we are reviewing our operating model, cost base and workforce needs.”

“It is important to note that no decisions have been made regarding any specific measures or potential impact on roles.”

“We recognise these discussions can create uncertainty, and as decisions are made, we will communicate with our people first and in a respectful way.”

“We are determined to make responsible decisions that position the firm for a sustainable future.”